LOS ANGELES — Motorcar Parts of America (MPA) has increased its strategic investment in Fenwick Automotive Products Limited to an aggregate amount of approximately $5 million (USD).
In August, MPA made a $1.9 million (CDN $2 million) investment in Fenwick, which was structured as a secured loan with an option to acquire substantial ownership of the company for an aggregate $10 million (CDN). Under revised terms of the agreement, MPA 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 $4 million (CDN).
"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 CEO 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."
