About 18 months after announcing financial restructuring, Spectra Premium Industries announced that it has been acquired and will undergo a name change.
Turnspire Capital Partners, a New York-based private investment firm, has acquired the auto parts manufacturer. It will now operate the comapny under the name of Spectra Premium Mobility Solutions.
The deal allows Spectra to be able to come out of its financial restructuring under the Companies’ Creditors Arrangement Act (CCAA) in the fourth quarter of this year, the Boucherville, Que.-based company said in an announcement. This would be contingent on approval by courts in both Canada and the United States.
“The agreement with Turnspire brings new capital investment, a clean balance sheet and financial stability, strengthening our ability to compete as an advanced and robust automotive and heavy-duty parts manufacturer,” said Denis Chabot, President and CEO at Spectra. “Combining our key operating competencies with Turnspire’s industry experience and focus on operational excellence will allow Spectra to better serve OEM and aftermarket customers with high quality products, most of which are manufactured here in North America.”
The company manufactures cooling systems, fuel delivery, ignition and engine management, climate control, and undercar components. Turnspire specializes in acquiring businesses that it considers to be of high quality and have reached a point either financially or operationally where change is necessary. Turnspire says it provides a hands-on and operationally focused approach.
“With its storied history and compelling market position, Spectra Premium is an ideal fit for our strategy of investing in niche industrial businesses that can benefit from Turnspire’s significant strategic and operating resources,” said Ilya Koffman, managing partner at Turnspire. “We look forward [to] completing the transaction and to working with the talented, experienced and dedicated leadership team and valued employees of Spectra Premium.”
In March 2020, Spectra announced that was seeking protection to restructure its operations and its debt while continuing normal operations.
It also made an application under the CCCA to the Quebec Superior Court of Justice and a Chapter 15 filing in the United States, to recognize and give effect to the Canadian filing.
“Our senior management team believes that this decision, difficult as it may be, remains the best option to move the organization forward with the greatest prospect of future success,” said Jacques Mombleau, then-president and CEO of Spectra.