ORLANDO, Fla., Feb. 5, 2010 (GLOBE NEWSWIRE) — General Automotive Company (OTCBB:GNAU), a North American provider of aftermarket parts and advanced technology for the automotive industry, today announced it has an agreement to acquire privately held S.P.E.C., Inc.
The transaction is expected to further position the Company as an organization that capitalizes on both organic growth as well as growth through strategic acquisition.
S.P.E.C., Inc., based in Birmingham, AL, is a leading provider of high performance clutches and flywheels to the high performance automotive market. S.P.E.C., which reported unaudited revenue of approximately $5.6 million in 2009, will operate as a wholly owned subsidiary of General Automotive. Additionally, key S.P.E.C. executives will be retained to ensure smooth integration and operational continuity.
Dan Valladao, president and CEO of General Automotive said, “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.”
He added, “We expect the SPEC acquisition to help General Automotive and its current subsidiary OE Source continue to expand its product offerings. There are great synergies between the 2 companies that will allow each of them to improve distribution and revenue. In the meantime, we continue to evaluate additional acquisition targets.”
* Leading provider of clutches, flywheels and pressure plates to the high performance automotive market
* Extensive distribution network with over 100 domestic dealer participants
* State-of-the-art warehouse and production facility
Under terms of the agreement, General Automotive will issue 750,000 shares of restricted common stock to the current owners of S.P.E.C., Inc. in addition to $2 million cash. S.P.E.C., Inc. shareholders can earn shares over the next six years based on the achievement of certain revenue and profitability milestones.