Motorcar Parts of America has acquired the Centric Parts brake brands out of First Brands Group’s Chapter 11 bankruptcy, taking on a portfolio that industry reports estimate generated gross sales as high as $400 million at the supplier level. Motorcar Parts of America, a remanufacturer, manufacturer, and distributor of automotive aftermarket parts, picked up the intellectual and digital property tied to the brands through a court-supervised process under Section 363 of the U.S. Bankruptcy Code. Additional terms were not disclosed.
Highlights
- Motorcar Parts of America (Nasdaq: MPAA) acquired the intellectual and digital property behind the Centric Parts brake brands, including their catalogs, engineering, and proprietary technical information.
- The key brands include Centric Parts, Posi Quiet, StopTech, C-TEK, and GCX, among others.
- Industry reports estimate the Centric Parts brake business generated gross sales as high as $400 million at the supplier level.
- The deal closed through a Section 363 sale in First Brands Group’s Chapter 11 process, structured without assuming operational liabilities.
What Did Motorcar Parts of America Acquire?
The transaction covers the intellectual and digital property behind the Centric Parts brake brands, along with the associated catalogs, engineering, and proprietary technical information. The key brands include, among others:
- Centric Parts
- Posi Quiet
- StopTech
- C-TEK
- GCX
A Section 363 Sale Out of First Brands’ Bankruptcy
The Centric Parts brands had been part of First Brands Group‘s aftermarket lineup before the supplier filed for Chapter 11. Motorcar Parts of America acquired them through the court-supervised sale process opened under Section 363 of the U.S. Bankruptcy Code to market First Brands’ assets. The transaction was structured without assuming operational liabilities, and certain assets were transferred free of all liens, claims, and encumbrances.
Leadership Comments
Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America, tied the purchase to the company’s broader braking strategy.
“This purchase complements the company’s expansion of brake-related product coverage and commitment to the braking category, particularly within the professional installer and performance segments,” Joffe said.
“Our reputation as a high-quality supplier of non-discretionary aftermarket parts, coupled with capacity to meet increasing customer demand, distinguishes our company. Equally important, our customers will continue to benefit and be supported by an industry-leading team and exceptional value-added service,” Joffe added.
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