Insurance Auto Auctions Acquires Competitor

Insurance Auto Auctions Inc., a North Hollywood seller of salvage vehicles, said it has acquired Underwriters Salvage Co., an auto salvage pool company with operations in New York, New Jersey, Massachusetts, Texas, Illinois and California.

The $17-million purchase price included $15 million in cash and $2 million in stock. Underwriter shareholders might receive another $3 million in stock.

Insurance Auto said the merger would allow it to provide services for the first time in Northern Texas, Massachusetts and New York, and would expand its operations in California, Illinois and New Jersey.