Wynn’s Agrees to Option to Buy Stake in Zemco

Wynn’s International Corp. said it has approved in principle an agreement that would give the automotive parts maker the option to buy more than 90% of another parts producer, Zemco Group Inc., and strengthen its position in the industry.

Under the proposal, Wynn’s would buy $4 million of San Ramon, Calif.-based Zemco’s 10% notes, which can be converted into 50% of Zemco’s common stock outstanding. As part of the plan, Wynn’s, which is headquartered in Fullerton, would also buy an additional 40% of the privately held electronic auto parts maker if it converts the notes.

John F. Lillicrop, Wynn’s president and chief executive, would join Zemco’s board of directors as part of the pending agreement.

Wynn’s representatives, who said that the two companies sell to similar customers, plan to help the 8-year-old Zemco develop in the blossoming electronics parts industry regardless of whether Wynn’s eventually decides to exercise the stock options. Wynn’s also will help Zemco develop climate-control systems for Wynn’s air conditioner units. Zemco’s product line now includes electronic dashboard units, burglar alarm systems, drive computers and cruise controls.