Motorcar Parts of America, Inc. has announced it has made a US$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.
“This transaction represents a potential opportunity to expand beyond Motorcar Parts of America’s alternator and starter business and leverage our company’s existing manufacturing expertise and distribution channels with a broad array of automotive products. A major benefit of the transaction is the option to acquire a substantial portion of Fenwick Automotive and likely more than double Motorcar Parts of America’s annual revenues with expected accretive earnings,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America, Inc., in a statement.
While Motorcar Parts of America is focused on the alternator and starter supply categories, Fenwick Automotive, which also has its roots in the remanufacturing business, has been largely focused on the supply of remanufactured undercar and drive-line parts such as brake calipers, CV shafts, steering racks, and clutches, with the addition of recently added categories such as wheel bearings.
“We are proud to be associated with Fenwick Automotive, a company that has been one of the finest and most respected suppliers to the aftermarket industry for more than sixty years,” Joffe added.
He noted that the two organizations serve all of the major automotive aftermarket sales channels.
“We are pleased to be working with an organization with the market presence and reputation of Motorcar Parts and look forward to working with the company’s team,” said Gordon Fenwick, chief executive officer of Fenwick Automotive Products.
He noted that Motorcar Parts and Fenwick are both customer-centric organizations, ISO/TS16949 registered, and recognized for the highest level of quality and service.