Parker Automotive Makes Deal With TRW
In a deal that will at least quintuple annual sales, Parker Automotive Corp. said Monday that it has signed a five-year, $100-million distribution pact with TRW International.
Under the agreement, the unit of Cleveland-based TRW Corp. will buy a minimum of $20 million of Parker Automotive’s pollution-reducing products for internal combustion engines, according to Diane Parker, a vice president of the 3-year-old company.
For its fiscal 1990 year, which ended Feb. 28, Parker Automotive will report sales of just under $4 million, Parker said.
Under the distribution agreement, TRW International will import, export, market and service Parker Automotive’s CarbonClean family of pollution-reducing products for internal combustion engines within Europe.
Parker said CarbonClean is a patented system for cleaning gasoline and diesel engine fuel systems without dismantling carburetors or fuel injectors.
The system consists of CarbonClean solvents for various types of engines and machinery to pump the solvents through the engines.
Users include a number of municipal and regional public transportation services, including the Orange County Transit District, as well as more than 2,000 auto dealership service departments, Parker said.
Parker Automotive, with 50 employees, maintains its headquarters in Costa Mesa and has a manufacturing plant in Fountain Valley.
Parker said the deal with TRW International is a “huge boost” for the company and that Parker Automotive currently is negotiating with another major firm for a similar exclusive distribution deal in either Asia or South America.
Parker Automotive is 75% owned by members of the Parker family, with the remaining shares traded in the over-the-counter market. The stock currently sells for about $4.50 a share, Parker said. She said the company has applied to be listed on NASDAQ, the National Assn. of Securities Dealers’ electronic quotation system.
