Auto Service World
News   May 9, 2011   by Auto Service World

Motorcar Parts of America Acquires Fenwick Automotive

Acquisition More Than Doubles MPA Revenues, Expands Product Line

Motorcar Parts of America, Inc. has announced it has acquired Toronto-based Fenwick Automotive Products Limited 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. Figures in U.S. dollars
“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.”

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