WESTCHESTER, IL -- Insurance Auto Auctions Inc. (IAAI), a nationwide provider of remarketing services for salvage, repossessed, do-not-repair and slightly damaged vehicles, announced last week that is has signed a definitive agreement to be acquired by private equity-investment firm Kelso & Co. for $385 million.

Michael Goldberg, CEO of Kelso & Co. said the existing management team, led by CEO Tom O'Brien, will remain in place and continue to lead the organization.

"This is a very positive event for the company and its customers," said George Wright, national director of strategic accounts. "The infused capital will enable us to expand into new geographic markets quicker, and will amplify our growth in enhanced automotive salvage services."

Kelso & Co., based in New York and manages a $2.1 billion private equity fund, has committed to providing the necessary equity for the deal in conjunction with certain members of Insurance Auto Auctions management. Kelso also received debt-financing commitments for the transaction.