WESTCHESTER, Ill., Oct. 09, 2015 (GLOBE NEWSWIRE) -- Fenix Parts, Inc. (Nasdaq:FENX), a leading recycler and reseller of original equipment manufacturer (“OEM”) automotive products, today announced the acquisition of Tri-City Auto Salvage, Inc. (“Tri-City”) in Greensboro, North Carolina for approximately $6.6 million in cash and 42,363 shares of Fenix common stock. The cash portion of the purchase price was financed through a combination of cash on hand and utilization of $6.5 million of the Company’s credit facility. Tri-City is a full-service automotive recycling facility servicing Greensboro and the surrounding markets and represents Fenix Parts’ second location in North Carolina. For the 12 months ended June 30, 2015, Tri-City had revenues of approximately $8 million.
Kent Robertson, CEO of Fenix Parts, said, “We are pleased to announce the acquisition of Tri-City Auto Salvage, which has been doing business in central North Carolina – which includes the Greensboro, Charlotte, Raleigh-Durham and surrounding areas – for the past 21 years. Led by an experienced and highly respected management team, Tri-City offers a broad selection of used parts for both domestic and foreign model vehicles. In-line with our strategy, it will provide our customers access to a larger and more diversified inventory of parts while also expanding our distribution, dismantling, warehouse and yard capacity. We are excited by the opportunities Tri-City will bring to Fenix Parts’ customers and shareholders.”
Robertson continued, “Tri-City builds off of our recent acquisition of Butler Auto Sales and Parts in Forest City, NC, establishing Fenix as a leader in the state’s strong automotive recycling industry. In addition, with 16 facilities strategically located throughout the East Coast and a strong pipeline of acquisition candidates, Fenix Parts remains well positioned to execute our long-term growth strategy.”
About Fenix Parts
Fenix Parts is a leading recycler and reseller of original equipment manufacturer (“OEM”) automotive products. The company’s primary business is auto recycling, which is the recovery and resale of OEM parts, components and systems reclaimed from damaged, totaled or low value vehicles. Customers include collision repair shops (body shops), mechanical repair shops, auto dealerships and individual retail customers. Fenix provides its customers with high-quality recycled OEM products, extensive inventory and product availability, responsive customer service and fast delivery.
Fenix was founded in January 2014 to combine eight founding companies and create a network that offers sales, fulfillment and distribution in key regional markets in the United States and Canada. The Fenix companies have been in business an average of more than 25 years and, including Tri-City, operate from 16 locations.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected, expressed, or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by use of words such as "may, will, should, anticipates, believes, expects, plans, future, intends, could, estimate, predict, projects, targeting, potential or contingent," the negative of these terms or other similar expressions. Our actual results could differ materially from those discussed or implied herein.
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