Leading off our recap of the week’s top news is the announcement that Coni-Seal Chairman and Founder Robert Pagano plans to retire at the end of the year. In conjunction with Pagano’s retirement, the company recently explored several strategic options and is in the final stages of recapitalization negotiations with several prominent players in the automotive aftermarket industry. Coni-Seal retained Capstone Financial Group to outline strategic options, and Pagano said the company plans to announce a new equity capital structure within 60 days.
Pagano began working in a family repair business that was started by his father in the early 1900s. He quickly gained a working knowledge of vehicles by supervising a team of mechanics at what was then the largest truck brake repair facility in northern New Jersey. In the late 1970s, he opened an auto brake parts manufacturing company and was an early supplier of disc brake pads. Coni-Seal originally focused on hydraulic brake parts only. Beginning in the 1990s, the company was an early entrant into Asia, sourcing quality brake parts at attractive price points. Today, the company’s product line consists primarily of hydraulic parts, including wheel cylinders, master cylinders, brake hoses and clutch hydraulics, and a broad range of chassis parts including ball joints, tie rod ends, center links and control arms. In 2006, Coni-Seal launched a limited line of front and rear hub bearings.
Also in our top five this week was the announcement of the launch of a new website for Standard Motorcycle Products, a division of Standard Motor Products. Standard Motorcycle Products provides a broad offering of ignition components, fuel injection parts, ignition wire sets, electrical switches and sensors. The new website — www.standardmotorcycle.com — is designed to serve as a resource for customers to learn about the product line, locate distributors, access the online catalog and more.
Within the distribution segment, O’Reilly Automotive announced this week that the 6 3/4 percent Exchangeable Senior Notes due 2025, which were originally issued by CSK Auto Corp., are now exchangeable at the option of the holders and will remain exchangeable through Dec. 31. In connection with its acquisition of CSK, O’Reilly agreed to guarantee the notes, on a subordinated basis, and to issue shares of O’Reilly common stock, if any, upon any exchange of the principal amount of the notes. The notes became exchangeable as the company’s common stock closed at or above 130 percent of the Exchange Price for 20 trading days within the 30 consecutive trading day period ending on Sept. 30. As a result, during the exchange period commencing Oct. 1 and continuing through and including Dec. 31, for each $1,000 principal amount of the notes held, holders of the notes may, if they elect, surrender their notes for exchange.
In other news, Deeza Chassis Parts has appointed Patrick Moran as national sales manager. In this new role, he will head the company’s sales activities including traditional domestic aftermarket business development for all states, managing sales representative agencies, establishing new sales and distribution channels, program development and customer relations. Prior to joining Deeza, Moran held sales management roles at leading aftermarket companies including Fram/Autolite Corp., Worldparts Corp., Beck/Arnley, BWD Automotive and Interamerican Motor Corp.
Rounding out our review of the week’s top news, we learn of a new dealer recruitment agreement between the newly formed Art Blumenthal LLC and Midas. The new agreement comes on the heels of the announcement in August that tire and automotive aftermarket industry veteran Art Blumenthal launched a new aftermarket-specific nationwide business brokerage firm bearing his name. Leveraging more than 30 years of experience as both an aftermarket business owner and aftermarket technology executive, Art Blumenthal LLC provides brokerage and advisory services to both buyers and sellers of industry businesses of all sizes. Blumenthal’s experience includes his ownership of four Midas Auto Center franchises early in his career. Under the terms of the new partnership, Blumenthal will find and recruit entrepreneurs for immediate nationwide opportunities to become Midas Auto Center franchisees. Blumenthal will act on behalf of Midas Corp. for selected company owned locations that are for sale, as well as individual franchisees who wish to retire.
