WAYNE, NJ — Street Glow, Inc., which produces performance lighting products for the aftermarket, has signed a letter of intent to sell a portion of ownership to a Chinese investment group called Street Glow (Hong Kong), Ltd. This group includes members from Street Glow’s long-time Chinese vendor which manufactures virtually all of the Street Glow brand of Auto-Neon and performance lighting products. The sale to Street Glow (Hong Kong), Ltd. is expected to close the middle of the third quarter of 2004.
“This is a strategic alliance between two partners who have a historic customer/vendor relationship. By having a percentage of the company owned by a group which includes our primary vendor, Street Glow is able to solidify the supply chain for our existing product offerings and create free-flowing inventory of new products,” said Street Glow’s CEO and Founder, Jack Panzarella.
Street Glow pursued the sale as a means to increase fill rates and create a real-time inventory process for efficient inventory management. The new partnership will link manufacturing and inventory so that Hong Kong has real-time access to Street Glow’s sales and inventory data. “This is a key component to eliminating shipping delays on products coming from China, while delivering our customers a much more streamlined order and delivery process. The only change our customers will notice is the speed in which their orders are fulfilled,” said Panzarella. He added that this will expand to an enhanced “speed to market” for new product offerings.
With the sale comes some internal restructuring, the company said. Lou Merz, who joined the company in June 2003, has stepped down as president. John Bailey, Street Glow’s CFO since 1998, will assume COO duties and responsibilities. The company will not be naming a new president, Panzarella said.
Panzarella will remain CEO and focus his efforts on business development and new product opportunities. He will also enhance his focus on strategic marketing. Bailey’s role will include operations, finance, human resources and sales. Both Jack and John will be interfacing with the Hong Kong management on a regular basis.
The company stated there is a possibility of accretive acquisitions in the automotive aftermarket and mobile electronics segments, in the future.
For more information, visit: www.streetglow.com .
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