Keystone Automotive Operations, Inc. Bids to Acquire Arrow Speed Warehouse Assets at Auction
EXETER, Pa., Sept. 22, 2008 - Keystone Automotive Operations, Inc., a leading distributor and marketer of automotive aftermarket accessories and equipment in North America, today announced it has bid to acquire certain operating assets of Arrow Speed Warehouse, a leading distributor in the Central and Southeastern United States. On September 21, 2008, Arrow Speed Warehouse, based in Kansas City, Kansas, filed petitions in the United States Bankruptcy Court for the Western District of Missouri for protection under chapter 11 of the Bankruptcy Code.
Keystone's bid is subject to competing bids pursuant to an auction process to be approved by the Bankruptcy Court. The Bankruptcy Court will also approve the final sale of Arrow's operating assets, and so there can be no guarantees regarding the outcome of the auction.
Keystone has bid approximately $12 million, subject to certain adjustments, to acquire inventory and other operational assets of Arrow Speed Warehouse and other affiliates, which distributes a wide variety of product lines nationally to customers via their warehouse facilities and sales offices.
While the market and economy have challenged the automotive business in particular, Keystone is well-capitalized and therefore well-positioned to pursue market opportunities as they arise. Arrow Speed Warehouse has been recognized for its customer service, creative solutions, and ability to recognize and meet the needs of the market, which makes its assets attractive to Keystone.
"We are excited about the possibility of integrating Arrow Speed Warehouse's customer base into Keystone and will work hard to earn their business," said Ed Orzetti, Chief Executive Officer of Keystone Automotive Operations. "The most important drivers of our business continue to be execution, delivery, service, and accountability, and we believe this potential transaction would help Keystone to grow our business and to support stability in the automotive accessories industry."