BOUCHERVILLE, Quebec — Spectra Premium Industries, a manufacturer of fuel tanks and related components, has announced the sale of assets of the majority of its 35 U.S. warehouses.
“The time has come to proceed with the sale of this distribution network, now that all of our manufactured product lines have a solid reputation in the U.S. market, and that globally all national and regional distributors in the United States are well positioned to promote our products in this market, where we have great growth potential,” said Jacques Mombleau, CA, President and Chief Executive Officer of Spectra Premium Industries Inc.
Four locations located in Wisconsin will be sold to Automotive Cooling Products Inc. (ACP), a well-established warehouse distributor in this area, with headquarters in Minneapolis, MN. The majority of assets of the other locations will be sold to a company to be formed by the current management team of the U.S. distribution division of Spectra Premium, for which their head office will be based in Medford, Massachusetts.
Spectra Premium will continue to operate a limited number of regional warehouses in the United States, namely a warehouse located in Knightstown, IN, and another located in Phoenix, AZ. These operations will operate in conjunction with the company’s main distribution hub located in Boucherville, Quebec, to offer a better daily service to our ever growing U.S. auto part retail chain and traditional warehouse distributor customer base.
“These locations will be sold to warehouse distributors that are already clients of the corporation, that have a sound knowledge of this type of operation, as they already manage similar operations, and with whom we have a good growth potential, mainly for radiators. Long-term supply agreements that accompany these transactions will enable us to maintain the actual sales volume in our manufacturing operations and we are convinced that by clearly positioning our corporation as a manufacturer, we will attract new clientele and thus generate a greater sales growth potential in upcoming years,” added Mombleau.
These transactions, for which the closure dates will vary between May 1-31, are worth approximately $20 million. On an annual basis, the net effect on the company’s consolidated sales will be a drop of about $25 million and the immediate impact on net profit will be minimal.
For more information about Spectra Premium, go to: www.spectrapremium.com .
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