MPA Purchases Fenco
The acquisition is expected to be completed within a two-year period and the company expects annual savings of at least $20m once the acquisition is integrated.
MPA management anticipates that Fenco will contribute at least $25m of annual EBITDA from the existing revenue base once integration is completed.
MPA is a remanufacturer of alternators and starters for imported and domestic passenger vehicles, light trucks and heavy duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the US and Canada.
Fenco is a manufacturer and distributor of new and re manufactured aftermarket auto parts for the full range of passenger and truck vehicles it serves, which includes steering components (pumps, gears and racks), brake calipers, master cylinders, hub assembly and bearings.
Selwyn Joffe, chairman, president and CEO of MPA, said: â€œThe 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.
â€œThe 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.â€
Gordon Fenwick, chairman of Fenco Automotive, said: â€œWe have outstanding people and are excited to work with MPA to build an industry-leading organization, 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.â€
Will the move commercially benefit MPA?
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