Spectra Premium Industries – under restructuring protection – is getting out of the fuel pump and heat transfer businesses in the U.S.
The company announced it is maintaining the sale of all its other product lines in the U.S. market, including industrial radiators, as part of its recovery plan. These decisions will not affect its product offering in the Canadian market, where operations will continue as usual.
Spectra Premium has agreed to sell its inventory of fuel pumps and related products inventory to Trico Group LLC.
“Our fuel pump distribution operations in the United States required significant working capital without generating the expected financial returns,” said Jacques Mombleau, president and CEO of Spectra Premium. “This transaction will allow us to significantly reduce our debt level, a key element of our recovery plan.”
The agreement, which is subject to court approval, is expected to be finalized within 30 days.
Mombleau said the company is focusing its efforts and financial resources on manufacturing products where its lines are still competitive.
“This is a first step in our ongoing efforts to emerge from protection under the Companies’ Creditors Arrangement Act,” he said.
Spectra Premium also announced it would discontinue the sale of automotive heat transfer products in the United States (radiators, condensers and heater radiators) by the end of July.
Leave a Reply