St. Louis, Missouri -- February 24, 2016 -- Automotive Commodity Exchange (ACE) and MCI Cores (MCI) have signed a definitive merger agreement. This agreement combines the collection, harvesting, and distribution of “big” automotive cores and commodities processed by ACE with that of the “small” automotive cores and commodities processed by MCI.
“Big” automotive cores encompass engines, transmissions, transfer cases, and rear ends. “Small” automotive cores include complex electrical, A/C, brakes, rotating electrical, and hydraulics.
“The purpose of combining ACE and MCI is to provide a one-stop-shop for our suppliers and customers,” says Benny Cunningham, CEO of ACE. “We have a more advanced and modern vision of the future of the recycling industry and we start by combining resources."
ACE will move its facilities from Kansas City, Missouri to St. Louis. ACE/MCI Commodities have purchased a 430,000 sq. ft. facility in St. Louis to supplement MCI’s existing 150,000 sq. ft. facility. In addition, ACE/MCI Commodities have obtained an 836,000 sq. ft. facility in Appomattox, Virginia for future projects and expansion.
“The increased capacity allows us to process all cores and commodities, reduce wait time, and increase turns. It’s a win-win for everybody,” says Cunningham.
There are obvious synergies between the two companies that might have served as encouragement for the merger.
“By teaming up with ACE, MCI has the opportunity to break through barriers in the “small” automotive core parts industry, expand product offerings, and take the business to the next level. Our entire team is excited to work with ACE,” says Ed Matejcic, CEO of MCI.
The merged company will be named ACE/MCI Commodities. Benny Cunningham has been named as the CEO. An official statement says that ACE/MCI Commodities will be actively releasing new programs in the upcoming months that will benefit the recyclers, customers, and remanufacturers.