Champion agrees to purchase Tomco

Champion Parts Inc., a re-manufacturer of automotive parts, announced it has signed an agreement to purchase the remanufactured carburetor assets of Tomco for approximately US$1.5 million in cash and up to US$9.5 million in contingent payments.

The agreement calls for Champion Parts to acquire the Tomco assets from a Los Angeles-based subsidiary of Cash Technologies, Inc., TAP Holdings, LLC.

It provides for the sale of most of the Tomco assets, including all carburetor-related inventory and major customer accounts.

TAP will retain its accounts receivables and its remanufacturing equipment and plant.

The Tomco carburetor product line had sales of about US$9.5 million in 2005. The transaction is scheduled to close in about two months.

Jerry A. Bragiel, president and chief executive officer of Champion Parts, said, “We are extremely pleased with the agreement that, when completed, will allow Champion to significantly increase sales of its remanufactured carburetors. This acquisition will help Champion broaden its customer base and provide us with broader marketing strategies and advantages that we believe will have a positive impact on our continued profitability.”