LOS ANGELES — Motorcar Parts of America has made a $1.9 million ($2 million CDN) strategic investment in Toronto-based Fenwick Automotive Products Ltd. The investment is 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," said Selwyn Joffe, chairman, president and CEO of Motorcar Parts of America Inc. "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.
"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 60 years," Joffe added.
Joffe also 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, CEO 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.
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