LOS ANGELES, May 9, 2011 (GLOBE NEWSWIRE) -- Motorcar Parts of America,
Inc. (Nasdaq:MPAA) today announced it has acquired Fenwick Automotive
Products Limited (Fenco) for 360,000 shares of Motorcar Parts' common
stock.
"The acquisition complements our existing customer relationships and
adds new sales cross-over opportunities. In addition, the transaction
greatly expands our strategic supplier relationships throughout Asia,"
said Selwyn Joffe, chairman, president and chief executive officer of
Motorcar Parts of America.
The acquisition is expected to more than double consolidated revenues.
In addition, the company expects to achieve annual savings of at least
$20 million once the acquisition is integrated, which is expected to be
completed within a two-year period. Management anticipates Fenco will
contribute at least $25 million of annual EBITDA from the existing
revenue base once integration is complete.
"Integrating the Fenco business into the MPA model is an exciting
challenge," Joffe said. He noted that Fenco, which sells private label
and branded products, is well-respected in the industry -- offering a
broad array of non-discretionary automotive-related components, such as
steering, brakes and clutches to original equipment replacement
customers, as well as the majority of leading retail and traditional
warehouse customers throughout North America.
Joffe emphasized that the acquisition complements the company's
existing position within the alternator and starter category to include
high-growth, under-the-car product line applications with significant
expansion opportunities moving forward. "The acquisition provides a
strategic platform for other add-on acquisitions, and the enhanced
ability to develop and offer other products -- including those that
support emerging automotive technologies," Joffe said. "Fenco has done
a tremendous job of launching critical application products into
high-growth opportunity categories, and we look forward to continuing
this success," Joffe added.
"Fenco's 60-year history highlights our commitment to the automotive
industry and we look forward to continued success as a subsidiary of
Motorcar Parts of America," said Gordon Fenwick of Fenco Automotive.
"We have outstanding people and are excited to work with MPA to build
an industry-leading organization." Fenwick added that "an enhanced
capital base and the adoption of best practices will better enable our
organization to take advantage of new and existing opportunities within
the market place."
Motorcar Parts and Fenco are both customer-centric organizations,
ISO/TS16949 registered, and recognized for the highest level of quality
and service.
About Fenco Automotive Products Limited
Based in Toronto, Canada, Fenco Automotive Products Limited is a
manufacturer and distributor of new and remanufactured aftermarket auto
parts -- including steering components (pumps, gears and racks), brake
calipers, master cylinders, hub assembly and bearings, clutches and
clutch hydraulics, constant velocity drive shafts, water pumps, control
arms and loaded struts for the full range of passenger and truck
vehicles in use in the markets it serves. Its products are sold through
all major distribution channels of the automotive aftermarket
throughout the United States, Canada and Mexico. The company's
facilities are located in Pennsylvania, New Hampshire, Toronto and
Mexico. Additional information is available at www.fencoparts.com
About Motorcar Parts of America
Motorcar Parts of America, Inc. is a remanufacturer of alternators and
starters for imported and domestic passenger vehicles, light trucks and
heavy duty applications. Its products are sold to automotive retail
outlets and the professional repair market throughout the United States
and Canada. The company's facilities are located in California,
Tennessee, Mexico, Malaysia and Singapore. Additional information is
available at www.motorcarparts.com
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