WESTCHESTER, Ill. -- Insurance Auto Auctions Inc. (IAAI) announced it has signed an agreement to be acquired by private equity-investment firm Kelso & Co. for $385 million. IAAI specializes in remarketing services for salvage, repossessed, do-not-repair and slightly damaged vehicles.

Michael Goldberg, CEO of Kelso & Co., said IAAI's existing management team, led by CEO Tim O'Brien, will continue to run 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, manages a $2.1 billion private equity fund. Along with certain members of IAAI management, Kelso & Co. has committed to providing the necessary equity for the deal. Kelso also received debt-financing commitments for the transaction.

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