No Issue Next Week!
We will NOT be publishing next week. Our offices will be closed July 2-6, reopening on Monday, July 9, with the next issue of The Greensheet dated July 12.
U.S. Aftermarket Sales To Total $327 Billion By 2021
The U.S. automotive aftermarket is expected to grow at a compound annual growth rate (CAGR) of 3.4 percent through 2021, according to the 2018 Joint Channel Forecast Model produced jointly by AASA and the Auto Care Association. The model also predicts that total aftermarket sales will grow from $286 billion in 2017 to $327 billion in 2021 — an increase of nearly $41 billion over the four-year period.
* Note: The Joint Channel Forecast of $327 billion is automotive (light vehicles – automotive aftermarket), while the $433 billion by 2021 forecast cited earlier this month along with the release of the Auto Care Factbook 2019 is for light, medium and heavy duty vehicles (total aftermarket).
The market-sizing and forecast is conducted on behalf of AASA and the Auto Care Association by IHS Markit. The forecast is based on the U.S. Census Bureau’s Economic Census, IMR and Polk data, as well as proprietary IHS Markit economic analysis and forecasting models.
Jefferies: Online Disruption Of Retail Auto Parts Market Remains Limited
Jefferies LLC on June 27 issued its latest Annual Online Strategy/Pricing Study of the automotive aftermarket, indicating that online disruption represents a limited risk for brick-and-mortar auto parts retailers and distributors. Analysts Bret Jordan and Mark Jordan note that the DIFM market has barriers to entry that make disruption from online-only players less likely and that third-party service agreements — similar to the Sears/Amazon tire partnership — are less applicable to mechanical parts.
When it comes to barriers to entry, the Jefferies team notes that online-only outfits — in order to be competitors in the DIFM segment — would need large and strategically located distribution centers that carry a broad assortment of low-turning inventory. And, given the broad range of consumer products that are already successfully sold online, the analysts note that most e-tailers would likely choose to fill existing DCs with more productive, higher-turning inventory rather than commit significant capital and DC capacity to DIFM auto parts.
Additionally, the report states that next-day shipping isn’t fast enough for the majority of repair shops, which rely on rapid parts delivery in order to maximize bay throughput. Further, price often takes a back seat to parts availability and speed of delivery, according to Jefferies.
Regarding the Sears/Amazon partnership, the analysts don’t expect a wide-scale rollout of similar programs in the mechanical parts market because of a number of factors, including …
• Drivers have limited knowledge of auto parts and vehicle repair, limiting their ability to identify the correct parts;
• Consumers ordering parts online are likely to make mistakes, leading to a high rate of returns;
• When it comes to failure parts, few consumers are likely to wait longer to have repairs performed under a Sears/Amazon-like model compared to the more efficient parts delivery system currently in place;
• Participating repair shops would have to be willing to forgo some walk-in service requests in order to handle work coming from online retailers; and
• Without integrated scheduling, it will be difficult for online retailers to book third-party service appointments when making parts sales.
On the DIY side, Jefferies’ research indicates that — consistent with prior pricing studies — Amazon and other online peers are relatively attractive in terms of price. For example, RockAuto offered a 31-percent discount on a specified set of SKUs when compared to peers, while Amazon offered a 10-percent discount. Advance Auto Parts offered the highest premium at 17 percent, followed by O’Reilly Automotive at 14 percent.
However, the analysts point out that brick-and-mortar retailers are stepping up their e-commerce game by way of expedited shipping options; various digital and omni-channel initiatives; and improving the look, responsiveness and customer experience of their digital capabilities.
“Despite the recent push many online retailers have made in the space, we believe that the online penetration of auto parts DIY sales will remain limited (less than 30 percent of market) due to a general lack of auto parts knowledge, immediate need for failure parts and a relatively high mix of ‘cash purchases,’” the Jefferies team wrote. “For simple transactions — such as coolants and other chemicals, accessories and appearance products, and even some maintenance parts (e.g. wiper blades) — we believe that online penetration will likely skew higher, as those categories/parts require less automotive knowledge.
“However, for most parts — including almost all hard parts — we expect that customers will still require guidance and information from knowledgeable parts professionals, which the established auto part retailers already provide. To that end, we expect traditional parts retailers will continue to win a significant portion of DIY business, while also competing effectively in the online channel.”
Looking ahead to 2020, the Jefferies team contends that the most probable scenario is that aftermarket retailers experience limited DIY market share loss to online players, while the DIFM market remains unchallenged by new entrants. And, given their favorable DIFM mix, NAPA, Advance and O’Reilly are likely to be less susceptible to share loss from online competitors than AutoZone, which has the largest DIY mix at roughly 80 percent.
BP-Lubricants Castrol Is Advance Auto Parts
‘Vendor Of The Year’
Advance Auto Parts presented its 2018 “Vendor of the Year” award to BP-Lubricants Castrol at its annual Supplier Summit held in Raleigh, NC. During the event, Advance also honored the following vendor partners …
• “Professional Excellence Vendor of the Year:” BWD Automotive Corp.;
• “DIY Excellence Vendor of the Year:” ITW Global Brands; and
• “Superior Availability Vendor of the Year:” Sylvania.
XL Parts Expanding In Texas Via Acquisition
Houston-based XL Parts, a member of the National Pronto Association, has acquired the assets of fellow Pronto member Full Service Auto Parts, including 12 locations in San Antonio and southern Texas. Financial terms of the deal were not disclosed. With this acquisition, XL Parts now has 95 locations across Texas, Louisiana and Oklahoma.
XL Parts is majority-owned by Marubeni Automotive Aftermarket Holdings, which also majority-owns The Parts House in Florida, a Parts Plus member of the Automotive Distribution Network that has 42 locations.
Energizer In Deal To Buy Nu Finish
Energizer Holdings — parent company to, among other things, the brands Refresh Your Car, California Scents, Driven, Bahama & Co., Lexol and Eagle One — has entered into an agreement to acquire Reed-Union Corp.’s automotive appearance business, including the Nu Finish Car Polish and Nu Finish Scratch Doctor brands. Financial terms of the transaction were not disclosed.
According to Energizer, Reed-Union’s auto appearance business has broad distribution across auto retail channels in the United States as well as sales into international markets, including Canada and Australia. “Adding the strength of the Nu Finish and Scratch Doctor brands to our existing Lexol and Eagle One products expands our auto appearance portfolio and continues our strategy of building our auto care business, both organically and through acquisitions,” said Energizer CEO Alan Hoskins.
Energizer intends to fund the acquisition through a combination of existing cash and committed debt facilities. Sawaya Partners, a consumer investment banking firm, was the exclusive financial advisor to Energizer on this deal.
More Details On GM’s $65-Million ACDelco,
Genuine GM Parts-Processing Center
General Motors Customer Care & Aftersales on June 20 broke ground on its new $65-million ACDelco and Genuine GM Parts processing center on Davison Road in Burton, MI. The 1.10-million-square-foot facility marks GM’s largest single investment in a U.S. warehousing and logistics facility in nearly 40 years.
When the parts-processing facility opens in early 2019, it will be the company’s main U.S. induction point for ACDelco and Genuine GM service parts that need to be unitized and packaged for sale.
The facility will be more than twice the size of GM’s existing 412,500-square-foot parts-processing center, which is located about five miles away. It will have 84 shipping and receiving docks — up from 35 at the existing facility.
After the new facility opens, GM will close its existing processing center in Burton, and those employees will transfer to the new site.
NorthPoint Development is building the new facility and will lease it to GM for an initial term of 12.5 years.
WAI Promotes Ryan Moul To CEO, Jordan Siegel To CFO/COO
WAI Global has promoted Ryan Moul to CEO. Moul, who has been with the company since 2006, most recently was senior vice president of operations and general counsel. Additionally, Jordan Siegel — who joined the company in 2017 — has assumed the roles of CFO and chief operating officer.
Jeff Sween, formerly CEO and co-president, and Doug Moul, formerly CFO and co-president, now are co-chairmen of WAI.
Sween called the new leadership positions for Ryan Moul and Siegel “the conclusion of a well-planned process” conducted over the last year — one designed to ensure that WAI has an organizational structure “capable and ready for long-term success.”
Miramar, FL-based WAI is a manufacturer and distributor of aftermarket products for automotive, heavy-duty, agricultural, industrial, marine and power sports applications. Its offering includes alternators, starter motors, starter/alternator components, vehicle electronics, window regulators, wiper motors, ignition coils, ignition leads and engine management products.
Sangsin Brake America Hires VP
Jeff Coggins is now vice president at Sangsin Brake America. He plans to add a sales team to expand the company’s footprint in the United States.
Established in 1975, Sangsin Brake is billed as the largest OE brake manufacturer in South Korea. Its global brands include Hi-Q, Hagen and Hardron. The U.S. branch will focus on the Sangsin brand and private-label business.
Prior to joining Sangsin, Coggins spent over 25 years in various roles at NAPA Auto Parts, including senior market manager for NAPA Brakes. He is based in Duluth, GA.
Brembo N.A. Adds Aftermarket Marketing Manager
Brembo has hired Todd Ciccone as the aftermarket marketing manager for Brembo North America. Ciccone joins Brembo with over 20 years of aftermarket experience, most recently as a brand and product manager at CRP Industries. His background also includes time with BMW North America and Volkswagen.
Borroughs Promotes Johnson To VP Of Sales
Borroughs Corp. (Kalamazoo, MI) has promoted Ricky Johnson from national sales manager to vice president of sales. He will continue to focus on Borroughs’ product applications for industrial, automotive and service bay equipment, while managing the outside sales team and growing national accounts. Over the past 20 years, Johnson has played a major role in the sales of Borroughs’ auto parts and service equipment, according to the company.
Polaris Building New Aftermarket DC In Nevada
Polaris Industries (Minneapolis) plans to build a 475,000-square-foot multi-brand distribution center in Fernley, NV. Located 30 miles east of Reno, the facility will support Polaris’ Aftermarket and Parts, Garments, and Accessories businesses. The Fernley distribution center — the company’s first multi-brand DC — will serve Polaris, Transamerican Auto Parts and Kolpin customers.
Polaris expects to break ground on the DC this summer, with completion slated for the second quarter of 2019.
Wiseco/Race Winning Brands Adds Automotive Product Manager
Chris Whitworth has joined Wiseco and its parent company Race Winning Brands (Mentor, OH) as its automotive product manager. Whitworth brings with him over a dozen years of automotive industry experience, including time with Raybestos Powertrain, Transtar Industries, the Accel Performance Group and the Wellman Products Group — most recently as a category manager at Transtar.
Whitworth is tasked with managing the development of the Wiseco Automotive and K1 Technologies automotive product lines, as well as working with both divisions’ product development, supply chain and quality teams.
GET’M Garage Augments Sales Team
Scooter Vester has joined the sales team at GET’M Garage (Winter Park, FL), a competition carburetors and performance parts company. A veteran racer and carburetor technician, he will work directly with racers and provide product technical support. Prior to joining GET’M Garage, Vester served in the technical service department at Holley Performance Products. He also has worked for Quick Fuel Technologies as a production manager and in sales and technical support.
AWE Promotes Panetta To Senior Performance Coordinator
AWE Tuning (Horsham, PA) has promoted Catherine Panetta from performance coordinator to senior performance coordinator. In her new role, Panetta reports to the company’s sales director, and has “dotted line” management of performance support, including all order intake and customer support. Panetta joined AWE two years ago.
AWE specializes in performance exhausts and accessories.
Global Auto Battery Demand Could Rise 13% Per Year Through 2022
Global demand for automotive batteries is forecast to rise 13 percent per year to $54.10 billion in 2022 as rising manufacturing and use of motor vehicles worldwide will spur sales growth, according to Global Batteries, 11th Edition, a new study from The Freedonia Group.
The hybrid electric vehicle (HEV) segment will more than quadruple in size, Freedonia asserts, as these vehicles increasingly penetrate global markets. Electric vehicles, which use more expensive batteries than hybrids, will post particularly strong growth, boosting overall market value, according to the firm’s research.
While falling prices for lithium-ion batteries (on a kWh basis) will be a major contributor to growth for HEVs, a shift toward batteries with higher capacities will boost prices on a unit basis and contribute to the expanding market size, according to Freedonia.
The automotive market is the largest outlet for battery sales worldwide, accounting for 34 percent of demand in 2017. The firm adds that the need for aftermarket batteries creates a massive global market for these products and provides a stabilizing influence in comparison to the more volatile OEM segment. And, while lead-acid batteries account for the vast majority of automotive market demand, lithium-ion and nickel-based types have steadily become increasingly prevalent with the commercialization of HEVs.
Initial List Of Presenters Unveiled For Gabelli Aftermarket Symposium
Gabelli & Co. (Rye, NY) has announced an initial list of indicated participants for its 42nd Annual Automotive Aftermarket Symposium taking place Oct. 29-30 during Industry Week in Las Vegas. The research conference will feature presentations from the senior management of various automotive companies, with an emphasis on industry dynamics, new technology and company fundamentals.
This year’s indicated participants (as of June 26) are …
• Autoliv Inc.;
• AutoZone Inc.;
• the Boyd Group Income Fund;
• BYD Motors;
• the Cooper Tire & Rubber Co.;
• Dana Inc.;
• the Donaldson Co.;
• the Genuine Parts Co.;
• Lear Corp.;
• Monro Inc.;
• Motorcar Parts of America;
• Navistar International Corp.;
• O’Reilly Automotive;
• the Penske Automotive Group;
• Rush Enterprises;
• Standard Motor Products;
• Stoneridge Inc.;
• Superior Industries International;
• Tenneco Inc.;
• Tesla Inc.;
• U.S. Auto Parts Network; and
• Veoneer Inc.
Tracer Products’ Daniel Tristan Selected As
OAC Second Vice Chair
Daniel Tristan, director of international sales for Tracer Products, has been selected as second vice chairman of the AASA Overseas Automotive Council (OAC). He is joined by the following fellow officers …
• Chairman: Norman Young of Weld Racing;
• First Vice Chairman: Steve Holloway of Federal-Mogul Corp.; and
• Ex-Officio: Mick Jordan of Cloyes Gear Products.
The OAC board of directors is composed of …
• Chris Anderson of Elgin World Trade;
• Carlos Baez of TVA Automotive;
• Joseph De Santino of JDS Worldwide Corp.;
• Jack Garcia of J.M. Garcia/MERCAP S.A.;
• Shamila Kakac of Onix Automotive;
• Jorge Hernandez of Gates InterAmerica;
• Tara Cevallos of SAP Corp.;
• Mark Marutiak of the Fram Group; and
• Laura Short of Melling Engine Parts.
The OAC advisory council is composed of …
• John Brunke of Mann+Hummel;
• Steven Dreyfus of Dreyfus Global Trade;
• Rafaat Kureshi of the Armored Auto Group;
• Richard Mezadurian of Aftermarket Strategies;
• Jose Sera of Gates InterAmerica; and
• Caroline Perrotta of the Intraco Corp. automotive division.
AASA president and chief operating officer Bill Long serves as OAC’s managing director, and AASA senior director of membership and sponsorship Ben Brucato is its executive director.
UMC ReTech Touts eBay Integration
UMC ReTech, a division of the Universal Manufacturing Co., is partnering with WHI Solutions, an eBay company, to make UMC ReTech’s aftermarket product data and inventory feeds available to eBay sellers. The partnership is seen as providing dealers and consumers with more accurate and timely information about ReTech products. The integration with WHI eBay Link will be available to approved distributors.
Meritor Names Chief Technology Officer
Meritor Inc. has appointed John Bennett to the newly created role of vice president and chief technology officer. As such, Bennett is responsible for establishing the company’s advanced technology portfolio and global product strategy, as well as serving as the “central thought leader for engineering excellence.”
Bennett most recently was general manager of global product strategy at Meritor — a position he’s held since 2013. His appointment is tied to the company’s introduction last month of the Meritor Blue Horizon brand, which Mertior plans to use to differentiate its electric drivetrain, efficiency and connectivity systems offerings.
Phillips Connect Technologies Buys Polish Electrical Components Outfit
Phillips Connect Technologies (a business of Santa Fe Springs, CA-based Phillips Industries) has purchased Fortech Poland LLC, a manufacturer and distributor of 24v electrical connectors and cables for commercial vehicles primarily in the European Union market. The newly formed company is called Phillips-Fortech Poland LLC. Fortech Poland founder Jacek Pekala is president of the management board of the new company.
Financial terms of the transaction were not disclosed.
Fortech Poland makes and distributes a line of commercial vehicle electrical components that’s similar to those produced by Phillips Industries in North America.
“We’ve been planning for this expansion into the E.U. market for some time but needed to be sure it met our stringent criteria for quality products and excellent customer service,” President and Chief Operating Officer Rob Phillips said in a press release announcing the move. “By acquiring Fortech, we’ve met that goal and will now be able to better serve current Phillips customers in Europe and future end-users, OEMs and aftermarket customers in this market. We’re excited to fully develop the Phillips-Fortech capabilities to further our global growth.”
Kinderhook Recapitalizes All States Ag Parts
Kinderhook Industries has announced the recapitalization of All States Ag Parts (ASAP) in partnership with John Dyke, who founded ASAP in 1998. Downing, WI-based ASAP is a supplier of used, rebuilt and aftermarket parts for all makes and models of tractors, combines and other farm machinery. ASAP is Kinderhook’s 54th automotive-related transaction. Financial terms of the transaction were not disclosed.
“ASAP is a great opportunity for Kinderhook to partner with a highly talented management team to execute a ‘buy and build’ strategy to consolidate and build a market leader in the agriculture parts industry,” said Michael Zoch, principal at Kinderhook, a private investment firm.
Dana Enters Into Joint Venture With Electric Motors, Inverters Maker
Maumee, OH-based Dana Inc. and Hydro-Quebec have announced a joint-venture partnership in which TM4 Inc. (a subsidiary of Hydro-Quebec) will become Dana’s source for electric motors, power inverters and control systems. Dana will become a majority shareholder of TM4 in exchange for roughly US$127 million, with Hydro-Quebec maintaining a 45-percent interest in TM4.
TM4 designs and manufactures motors, power inverters, and control systems for electric vehicles. Its offering is viewed as complementary to Dana’s portfolio of electric gearboxes and thermal-management technology for batteries, motors and inverters. The partnership establishes Dana as the only supplier with full “e-Drive” design, engineering and manufacturing capabilities — offering electro-mechanical propulsion solutions to each of its end markets, according to the companies.
“This joint venture brings together a world leader in mechanical power conveyance and thermal-management technology with an experienced manufacturer of electric motors and inverters to offer a broad range of hybrid and electric vehicle solutions for our customers across all three of our end markets,” Dana president and CEO Jim Kamsickas said in an announcement dated June 21.
Boucherville, Quebec will remain a center of excellence, with TM4’s current management team and employees remaining in place.
CAPA Appoints Industry Relations Manager
The Certified Automotive Parts Association (CAPA) has named Stacy Bartnik as the aftermarket industry relations manager for its testing and certification program. Bartnik’s duties include representing CAPA at industry functions and coordinating efforts with customers, industry experts and internal colleagues. Bartnik brings more than 20 years of industry experience to the post, including executive leadership roles with Team PRP, Carstar and Gerber Collision & Glass.
Alltech Automotive LLC, a dynamic global automotive supplier, is seeking a National Sales Manager to represent products it sells into the Automotive Aftermarket. … (more) … Click here to find out more.
The Regional Sales Manager is a dedicated position, concentrating on leading and generating sales/awareness and support of new products, new programs and updates to the Alltech customer base. … (more) … Click here to find out more.
Spectra Premium Industries, a leading North American Auto Parts Manufacturer, is seeking a highly qualified Regional Sales Manager to manage aftermarket parts sales throughout the Southwest United States. … (more) … Click here to find out more.
Proven investor with over 30 years of experience supporting entrepreneurs is interested in acquiring minority interest in successful, growing, entrepreneur-backed companies. Over 40 successful partnerships. Outstanding track record. Strong references from prior investment partners. Maintain control while also receiving substantial cash for partial buy-out. Diversify your holding and earn substantial potential upside in future years. … (more) … Click here to find out more.
Responsible for multiple customers within a sales channel as part of the sales organization, programs and budgets for multi-brand automotive and motorcycle filtration and accessory parts manufacturer and distributor. … (more) … Click here to find out more.
NHTSA Issues ‘Cease And Desist’ Order For Autopilot Buddy
The National Highway Traffic Safety Administration (NHTSA) has issued a “cease and desist” letter to the company selling an “aftermarket” product called Autopilot Buddy. The agency did not identify the company, but it’s believed to be Dolder, Falco & Reese Partners LLC, according to the website autopilotbuddy.com.
Marketed as a “Tesla autopilot nag reduction device,” its primary function — according to NHTSA — is to disable a safety feature in Tesla vehicles that monitors a driver’s hands on the steering wheel and warns a driver when hands are not detected.
“A product intended to circumvent motor vehicle safety and driver attentiveness is unacceptable,” NHTSA deputy administrator Heidi King said in a statement dated June 19. “By preventing the safety system from warning the driver to return their hands to the wheel, this product disables an important safeguard, and could put customers and other road users at risk.”
The letter directs the company to respond by June 29, and to certify to NHTSA that all U.S. marketing, sales, and distribution of the Autopilot Buddy has ended.
We were unable to contact Dolder, Falco & Reese Partners for comment as the website, autopilotbuddy.com, provided no contact information.
According to statements on autopilotbuddy.com, “The Autopilot Buddy restores the use of ‘Autosteer’ on Tesla vehicles to earlier Firmware 7 capabilities. This is not intended to be a hands-off device; your hands must remain on the wheel as directed by Tesla’s terms of ‘Autosteer’ user agreement.” The site further states that Autopilot Buddy is not for street use, but for track use only, and that the company is not affiliated with Tesla.
Additionally, autopilotbuddy.com states that the company is not “currently taking orders within the United States,” but allows U.S. residents to be added to a “waiting list” for when domestic orders resume. The product is available for sale outside the United States, according to claims made on the site.
6,250 Exhibitors And 140,000 Visitors Expected
At Automechanika Shanghai
Automechanika Shanghai — billed as Asia’s largest trade fair for auto parts, accessories, equipment and services — is expected to encompass roughly 3.77 million square feet of exhibition space this year, according to event organizer Messe Frankfurt. The show — which will take place Nov. 28 to Dec. 1 — is expected to draw 6,250 exhibitors and over 140,000 trade visitors. New to show will a “Chain Stores Zone” that includes domestic and international chain stores, e-commerce businesses, and automotive distributors.
People Watching 6/28/18
• Nicolas Vallières is now a senior data quality manager for JNPSoft, a Montreal-based IT solutions company specializing in the aftermarket. Vallières is a member of the Automotive Content Professionals Network (ACPN). Previously, he worked in various roles for Spectra Premium Industries.
• U.S. Lubricants, the lubricants distribution division of Appleton, WI-based U.S. Venture Inc., has named Jessica Sura as its director of finance. For the last three years, Sura has been the senior accounting manager for U.S. Oil, also a division of U.S. Venture.
• David Ramirez is now vice president of operations for Avon Lake, OH-based Design Engineering Inc. (DEI). His background includes time as general manager of PRW Industries and automotive aftermarket operations manager/sales manager at Spectre Performance.
• Trisha Tuntland has joined Littelfuse Inc. as its head of investor relations — a newly created role, reporting to CFO Meenal Sethna. Tuntland is tasked with messaging, communications, and outreach to the financial and investor community.
• Brent Acton, a 2017 graduate of Northwood University’s automotive aftermarket management program, has been appointed as a territory service manager for AP Emissions Technologies. Acton had been an intern for the past six months.
News Briefs 6/28/18
• The Auto Care Association issued a statement June 21 applauding a recent U.S. Supreme Court decision to permit states to collect sales tax on purchases of products made over the Internet. The association contends that the ruling puts online sellers on a level playing field with brick-and-mortar retailers when it comes to sales tax.
• Manasek Auto Parts, a recent Auto Pride signee based in Dickson City, PA, has implemented the Stratus hosted enterprise technology developed by Epicor for members of the Automotive Distribution Network. Integrated with The Network’s NetIntell data warehouse and WebShop connectivity to service dealers, the system includes point-of-sale, parts inventory and distribution management, accounts payable, general ledger, and more.
• Automotive Parts Associates (APA) has awarded five $1,000 scholarships for the 2018-‘19 academic year to children or employees of APA shareholders. The scholarships — administered by the University of the Aftermarket Foundation — went to people who will be attending, or attend, a two- or four-year accredited college; an ASE/NATEF certified post-secondary automotive, heavy duty or collision technician training program; or licensed and accredited vocational school.
• TrakMotive has launched a parts application lookup for mobile devices. The new TrakMotive app from ShowMeTheParts is free and available at both the Apple Store and Google Play. It allows users to search for compatible parts by vehicle make and model, part number, cross reference and VIN.
• Newcomb Spring Corp. has relocated its corporate headquarters from Decatur, GA to Alpharetta, GA. The move opens up space in the Decatur facility for an expanded manufacturing floor and new offices for the quality control department. Newcomb is a supplier of compression springs, extension springs, torsion springs, wire forms, stampings, rings, hooks and battery contact springs.
• Summit Racing Equipment is now the “Official Parts Supplier” to Power Automedia’s new automotive show, Horsepower Wars. The web-based series features competition between rivals in one of four venues: the dragstrip, road course, engine dyno or chassis dyno.
• STEEL-IT brand stainless steel coatings is now the official sponsor of the Lucas Late Model Dirt Series and is lending its name to the “Total Laps Led” award at each race. STEEL-IT also is title sponsor of the Production 1000 Class for the Lucas Oil Off Road Racing regional series.
• The “Manufactured Again program has grown to 25 ambassador companies, according to the Motor & Equipment Remanufacturers Association (MERA).
• Lippert Components Inc. has acquired STLA, an Italian manufacturer of bed-lifts and other RV components for the European market. The purchase price was $15.40 million. STLA’s sales were roughly $21 million last year, according to Lippert.
• Standard Motor Products (SMP) has tapped TFI Envision to review and refresh its overall brand positioning. The Norwalk, CT-based agency has designed SMP’s annual reports for the past six years.
Financial Briefs 6/28/18
• Aftermarket sales from the Donaldson Co.’s Engine Products segment increased 12.6 percent to $315.10 million in the fiscal third quarter ended April 30, 2018. On a constant-currency basis, aftermarket sales were up 8.2 percent. Management attributed the increase to improving market conditions and end-user demand, combined with growth in innovative product categories, including both air and liquid filtration products. Additionally, it should be noted that aftermarket sales included roughly $8.40 million in incremental sales from the acquisition of Hy-Pro.
• The Cooper-Standard Holdings board of directors has approved a share repurchase program, authorizing the company to repurchase, in the aggregate, as much as $150 million of its outstanding common stock. The program — which will be effective Nov. 6, 2018 — will replace a $125-million authorization to repurchase shares approved in 2016. Management expects the company to fund all repurchases from cash on hand and future cash flows from operations.
• Fortive Corp., parent company to Matco Tools among others, has commenced an underwritten public offering of $1 billion of its “Series A” mandatory convertible preferred stock. All of the shares in the offering are to be sold by Fortive. Fortive estimates that net proceeds from the sale will be roughly $1.16 billion (or approximately $1.34 billion if underwriters exercise in full their option to purchase additional shares). The company intends to use the net proceeds from this offering to fund acquisition activities, as well as for general corporate purposes, including repayment of debt, working capital and capital expenditures.
• P&F Industries (Melville, NY), parent company to Florida Pneumatic among others, was added to the Russell Microcap Index June 25 as part of the 2018 Russell indices reconstitution. Membership in the Russell Microcap Index remains in place for one year.
• The Blink Charging Co. (Miami Beach, FL) — an owner, operator and provider of electric vehicle charging equipment and networked EV charging services — has been added to the Russell Microcap Index.
Event & Trade Show Briefs 6/28/18
• The Aftermarket Auto Parts Alliance’s Annual Winter Shareholder Meeting will take place Dec. 2-5 in Miami.
• CAWA’s annual dinner meeting will take place Oct. 28 this year, the Sunday night before the AAPEX and SEMA shows, at Caesars Palace in Las Vegas.
• Entries are now being accepted for the SEMA Battle of the Builders competition at the 2018 SEMA Show in Las Vegas. New this year is recognition of a winner in each of the four categories: Hot Rod, Truck/Off-Road, Sport Compact and Young Guns.
• Registration is now open for the 2018 CVSN Aftermarket Summit, which will take place Sept. 8-12 at the Chateau Elan Winery & Resort in Braselton, GA. The deadline to register is Aug. 15. The summit is for top executives from suppliers and distributors in the heavy duty aftermarket.
• Messe Frankfurt expects this year’s Automechanika Frankfurt to draw 5,000-plus exhibitors from over 70 countries when it takes place Sept. 11-15.