Source: Thinkstock
According to the announcement the company plans to use the proceeds “to enhance the integration of its Fenco Automotive Products acquisition and for general corporate purposes to support the company’s growth.”
Now, $15 million is not a huge amount, but at the end of March the company reported less than $1.5 million in cash, cash equivalents, and short-term investments versus long-term debt of $62.56 million. Borrowing any more was probably not an option and the unnamed buyer drove a hard bargain. Motorcar Parts had better show some positive results from this transaction or the company could be toast.
Paul Ausick
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