Attached files
file | filename |
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8-K - FORM 8-K - MOTORCAR PARTS AMERICA INC | v58169e8vk.htm |
EX-10.1 - EX-10.1 - MOTORCAR PARTS AMERICA INC | v58169exv10w1.htm |
EX-10.2 - EX-10.2 - MOTORCAR PARTS AMERICA INC | v58169exv10w2.htm |
Exhibit 99.1
NEWS
RELEASE |
CONTACT: | Gary S. Maier Maier & Company, Inc. (310) 442-9852 |
MOTORCAR PARTS OF AMERICA INCREASES STRATEGIC INVESTMENT
IN TORONTO-BASED FENWICK AUTOMOTIVE
IN TORONTO-BASED FENWICK AUTOMOTIVE
LOS ANGELES, CA December 21, 2010 Motorcar Parts of America, Inc. (NasdaqGM:MPAA) today
announced it has increased the companys strategic investment in Fenwick Automotive Products
Limited to an aggregate amount of approximately US$5.0 million.
In August 2010 Motorcar Parts of America made a US$1.9 million (CDN$2.0 million) strategic
investment in Fenwick Automotive Products Limited structured as a secured loan with an option to
acquire substantial ownership of the company for an aggregate CDNS10.0 million. Under revised
terms of the agreement, Motorcar Parts of America 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 Fenwicks adjusted net income for the fiscal year ending March 31,
2011 is equal to or greater than CDN$4.0 million.
This additional investment and revised terms move both companies closer to the potential
exercise of Motorcar Partsoption to acquire Fenwick, said Selwyn Joffe, chairman, president and
chief executive officer 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, Joffe added.
About Fenwick Automotive Products Limited
Based in Toronto, Canada, Fenwick Automotive Products Limited is a manufacturer and
distributor of new and remanufactured aftermarket auto parts including steering components
(pumps, gears and racks), brake calipers, master cylinders, hub assembly and bearings, clutches and
clutch hydraulics, constant velocity drive shafts, water pumps, control arms and loaded struts for
the full range of passenger and truck vehicles in use in the markets it serves. Its products are
sold through all major distribution channels of the automotive aftermarket throughout the United
States, Canada and Mexico. The companys facilities are located in Pennsylvania, New Hampshire,
Toronto and Mexico. Additional information is available at www.fencoparts.com
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Motorcar Parts of America, Inc.
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About Motorcar Parts of America
Motorcar Parts of America, Inc. is a remanufacturer of alternators and starters for imported
and domestic passenger vehicles, light trucks and heavy duty applications. Its products are sold
to automotive retail outlets and the professional repair market throughout the United States and
Canada. The companys facilities are located in California, Tennessee, Mexico, Malaysia and
Singapore. Additional information is available at www.motorcarparts.com
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain
forward-looking statements. The statements contained in this press release that are not historical
facts are forward-looking statements based on the companys current expectations and beliefs
concerning future developments and their potential effects on the company. These forward-looking
statements involve significant risks and uncertainties (some of which are beyond the control of the
company) and are subject to change based upon various factors. Reference is also made to the Risk
Factors set forth in the companys Form 10-K Annual Report filed with the Securities and Exchange
Commission (SEC) in June 2010 and in its Form 10-Q filed with the SEC thereafter for additional
risks and uncertainties facing the company. The company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as the result of new information, future events
or otherwise.
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