Motorcar Parts of America, Inc. announced that it has increased the company’s strategic investment in Fenwick Automotive Products Limited to an aggregate amount of approximately U.S. $5.0 million.
In August 2010 Motorcar Parts of America made a U.S. $1.9 million (CDN $2.0 million) strategic investment in Fenwick Automotive Products Limited structured as a secured loan with an option to acquire substantial ownership of the company for an aggregate CDN $10.0 million. Under revised terms of the agreement, Motorcar Parts of America has the right to acquire all the outstanding shares of Fenwick for an aggregate purchase price of 360,000 common shares plus an additional 40,000 shares of common stock if Fenwick’s adjusted net income for the fiscal year ending March 31, 2011 is equal to or greater than CDN $4.0 million.
“This additional investment and revised terms move both companies closer to the potential exercise of Motorcar Parts’option to acquire Fenwick,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America, Inc.
“We remain excited about the Fenwick opportunity. Although there can be no assurances, we anticipate that the acquisition will be completed in early Fiscal 2012,” Joffe added.
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