Bidders Vie For Former Assets Of Bankrupt Auto Parts Giant Fenco

-- Tiger Group conducts bid offering for Fenco's former business units, real estate, manufacturing facilities, receivables, IP and $60 million in inventory and product lines; bids due Aug. 29

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Tiger Group

Aug 27, 2013, 10:17 ET

LOS ANGELES, Aug. 27, 2013 /PRNewswire/ -- Tiger Group's Remarketing Services Division is liquidating the former assets of one of North America's biggest auto parts suppliers—Fenco (Fenwick Automotive Products Ltd., Introcan and related entities)--in a bid offering that closes on Aug. 29 at 12 p.m. ET.

The court-supervised sale, which includes inventory and equipment groupings in Pennsylvania, California, Canada and Mexico, is extraordinary in scope and scale, said Andy Babcock, Tiger Group's Director of Inventory Strategies. "Fenco was a major supplier to companies like AutoZone, GM and NAPA Auto Parts, with annual revenues of approximately $200 million," Babcock noted. "This sealed-bid offering includes the gamut of Fenco's assets, from complete business units and equipment groupings, to receivables, real estate, IP and some $60 million in diverse inventory."

On June 10, 2013, Fenwick, Introcan and related entities filed for Chapter 7 in the U.S. Bankruptcy Court in Wilmington, Del. The Torrance, Calif.-based companies had sold new and remanufactured parts under private-label and the Fenco and DynaPak brand names for passenger vehicles and trucks sold across the globe. Parts sold by the companies included steering components, brake calipers, master cylinders, hub assemblies, clutches and hydraulics.

As part of the bid offering, major asset groupings are available to interested parties, Tiger announced. Examples of such groupings include the complete Fenco operation, the wheel-hub business unit, the equity interest in Fenco's FAPCO Maquiladora operation in Mexico, or all inventory of a particular product line.

With an at-cost value of $30 million, the finished goods include new and remanufactured aftermarket auto parts, as well as product lines such as steering systems, brake calipers, wheel hubs, brake master cylinders, CV joints, clutches and more.

The cores available in the sale have a total at-cost value of $18 million. These include power steering pumps, gears, rack-and-pinion, brake calipers and brackets, master cylinders, clutch kits, masters and slaves, and CV Joints. All cores are sorted, organized and layered in steel bins by part number and will be sold with the bins.

With an at-cost value of $12 million, the available raw material includes new imported brackets, semi-loaded and complete calipers, bleeder kits, O-rings, rack-and-pinion seals, tier rods, pump reservoirs, valves, shafts and much more, along with all related packaging.

The manufacturing and remanufacturing equipment being sold include grinders, shot blasters, finishing equipment, machine shops, testing equipment and material-handling equipment, along with pallet racking, trailers, and a wide variety of hand and power tools.

The accounts receivable are listed at $31 million. In addition, the Fenco and Dynapak Trademarks, along with the parts database and domain names such as Fencoparts.com and Fencotechhelp.com, are available for purchase.

On the real estate side, the sale includes a 50,000-sq.-ft. facility in Lock Haven, Penn.

For a full description of the inventory and details on how to bid, visit: www.SoldTiger.com.

About Tiger Group
Tiger Group provides asset valuation, advisory and disposition services to a broad range of retail, wholesale, and industrial clients. With over 40 years of experience and significant financial backing, Tiger offers a uniquely nimble combination of expertise, innovation and financial resources to drive results. Tiger's seasoned professionals help clients identify the underlying value of assets, monitor asset risk factors and, when needed, provide capital or convert assets to capital quickly and decisively. Tiger's collaborative, straight-forward approach is the foundation for its many long-term 'partner' relationships and decades of success. Tiger operates main offices in Boston, Los Angeles and New York. To learn more about Tiger, please visit www.TigerGroup.com.

SOURCE Tiger Group