KAR to Spin Off Salvage Business Unit

KAR Auction Services Inc.'s board of directors has formally approved the separation of its salvage auction business Insurance Auto Auctions.

The separation will take place on June 28, 2019, the company announced.

As part of the separation, Insurance Auto Auctions will become an independent publicly traded company on the New York Stock Exchange and will trade under the ticker IAA.

"It is with great pleasure that we announce this important step toward completing the separation of IAA from KAR Auction Services and launch the future of two companies," said Jim Hallett, chairman and chief executive officer of KAR. "Following the separation, KAR will concentrate its focus on its whole car auction marketplaces and technology solutions serving OEMs, captive financing companies, vehicle lending institutions, fleets, and franchise and independent car dealers."