Subsequent Events

3 Months Ended

Mar. 31, 2014

Note 16.

Subsequent Events

In April 2014, we formed a 50/50 joint venture with Gwo Yng Enterprise Co., Ltd., a China based manufacturer of air conditioning accumulators, filter driers, hose assemblies, and switches for the automotive aftermarket and OEM/OES markets. We acquired our 50% interest in the joint venture for $14 million in cash funded by our revolving credit facility. We anticipate that our investment in the joint venture will be accounted for using the equity method of accounting.

In addition, in April 2014, we acquired certain assets and assumed certain liabilities of Annex Manufacturing, a privately held company, for approximately $11.5 million in cash funded by our revolving credit facility. Annex Manufacturing, located in Fort Worth, Texas, distributes a variety of temperature control products for the automotive aftermarket. Revenues generated from the acquired business were approximately $22 million for the year ended December 31, 2013, of which approximately 40% of the volume was sold to us. Due to the relatively short period of time from the date of acquisition to the issuance of the accompanying unaudited consolidated financial statements, the initial accounting for the acquisition, including our evaluation of the fair value for significant assets and liabilities, including goodwill and intangibles, is not complete.