Fenix Parts, Inc. announced the acquisition of Tri-City Auto Salvage, Inc. 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, N.C., 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.”