General Automotive Company provides aftermarket parts and advanced technology for the North American automotive industry. As part of its strategy to boost organic growth, the company has secured an agreement to acquire Alabama-based S.P.E.C. Inc., a privately held manufacturer, developer and distributor of flywheels, clutches and pressure plates.
“The proposed acquisition is a critical milestone in the Company’s strategy to acquire established businesses with strong growth and profit potential in the $265 billion automotive aftermarket parts industry,” Dan Valladao, president and CEO of General Automotive stated in the press release.
S.P.E.C. has established a distribution network of more than 100 domestic dearer participants, and in 2009 reported unaudited revenue of approximately $5.6 million. Because of the company’s proven operational ability, key S.P.E.C. executives will remain with the company to continue its operations.
Per the agreement, General Automotive will acquire S.P.E.C. as its wholly owned subsidiary for $2 million and 750,000 shares of restricted common stock to the current owners of S.P.E.C. Additionally, S.P.E.C. shareholders can earn shares over the next six years based on the company’s revenue and profitability.
Valladao said the General Automotive continue to seek out additional acquisitions to further grow the company.
“We expect the S.P.E.C. acquisition to help General Automotive and its current subsidiary OE Source continue to expand its product offerings. There are great synergies between the two companies that will allow each of them to improve distribution and revenue. In the meantime, we continue to evaluate additional acquisition targets,” he stated.