Auto Service World
News   August 27, 2013   by Auto Service World

Fenco Assets Go on the Auction Block


The assets of Fenco, one of the Canadian automotive aftermarket’s most storied names and one of North America’s largest aftermarket auto parts suppliers,  go up for auction this week.

Tiger Group’s Remarketing Services Division is liquidating the former assets of one of North America’s biggest auto parts suppliers—Fenco (Fenwick Automotive Products Ltd., Introcan and related entities)–in a bid offering that closes on Aug. 29 at 12 p.m. ET.

The court-supervised sale, which includes inventory and equipment groupings in Pennsylvania, California, Canada and Mexico, is extraordinary in scope and scale, said Andy Babcock, Tiger Group’s director of inventory strategies. “Fenco was a major supplier to companies like AutoZone, GM and NAPA Auto Parts, with annual revenues of approximately $200 million,” Babcock noted. “This sealed-bid offering includes the gamut of Fenco’s assets, from complete business units and equipment groupings, to receivables, real estate, IP and some $60 million in diverse inventory.”

It was acquired by Motorcar Parts of America in May 2011 and  the resulting entities are now held as a separately capitalized subsidiaries. Fenco has been managed by a chief restructuring officer and a board not affiliated with Motorcar Parts of America, 

On June 10, 2013, Fenwick, Introcan and related entities filed for Chapter 7 in the U.S. Bankruptcy Court in Wilmington, Del. The Torrance, Calif.-based companies had sold new and remanufactured parts under private-label and the Fenco and DynaPak brand names for passenger vehicles and trucks sold around the globe. Parts sold by the companies included steering components, brake calipers, master cylinders, hub assemblies, clutches and hydraulics.

As part of the bid offering, major asset groupings are available to interested parties, Tiger announced. Examples of such groupings include the complete Fenco operation, the wheel-hub business unit, the equity interest in Fenco’s FAPCO Maquiladora operation in Mexico, or all inventory of a particular product line.

With an at-cost value of $30 million, the finished goods include new and remanufactured aftermarket auto parts, as well as product lines such as steering systems, brake calipers, wheel hubs, brake master cylinders, CV joints, clutches and more.

The cores available in the sale have a total at-cost value of $18 million. These include power steering pumps, gears, rack-and-pinion, brake calipers and brackets, master cylinders, clutch kits, masters and slaves, and CV Joints. All cores are sorted, organized and layered in steel bins by part number and will be sold with the bins.

With an at-cost value of $12 million, the available raw material includes new imported brackets, semi-loaded and complete calipers, bleeder kits, O-rings, rack-and-pinion seals, tier rods, pump reservoirs, valves, shafts and much more, along with all related packaging.

The manufacturing and remanufacturing equipment being sold include grinders, shot blasters, finishing equipment, machine shops, testing equipment and material-handling equipment, along with pallet racking, trailers, and a wide variety of hand and power tools.

The accounts receivable are listed at $31 million. In addition, the Fenco and Dynapak Trademarks, along with the parts database and domain names such as Fencoparts.com and Fencotechhelp.com, are available for purchase.

On the real estate side, the sale includes a 50,000-sq.-ft. facility in Lock Haven, Penn.

For a full description of the inventory and details on how to bid, visit: www.SoldTiger.com.


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