ARVIN'S CALSPAN AND SPACE INDUSTRIES FORM NEW SPACE COMPANY
ARVIN'S CALSPAN AND SPACE INDUSTRIES FORM NEW SPACE COMPANY COLUMBUS, Ind., Sept. 1 /PRNewswire/ --Arvin Industries, Inc.
(NYSE: ARV) and Houston Space Industries International, Inc. today reported that they have signed a letter of intent to combine their research, aeronautics and industrial space operations. The new company, to be named Space Industries International, Inc., will combine Arvin's Calspan subsidiary with Space Industries. Participation will be shared based on valuations to be made of the contributed operations, with ownership for Arvin of approximately 70 percent.
Calspan, based in Buffalo, N.Y., is a research, development, testing and evaluation company whose principal customer is the U.S. government. Its 1991 sales were $214 million. Space Industries, which is privately held, is an industrial spaceflight equipment and space systems company based in Houston. Arvin Chairman and Chief Executive Officer James K. Baker said, "The transaction will bring together two fine companies . . . Calspan, whose strength is in research and testing services over a broad range of aerospace and other technologies, and Space Industries, which has in ten years established itself as a leader in space industrialization. The new company will be a leading supplier of space-related technology, hardware and services to a broad market of users, including governments, industry, research institutes and universities. "This is an exciting opportunity for Arvin and for the people of Calspan to participate more fully in the commercial space sector, a market that grew by 29 percent in 1991 according to the U.S. Department of Commerce. This venture is also consistent with Arvin's goal to be a technology driven global supplier of auto parts. We will retain the in- house research and product development capability that Calspan provides Arvin on projects such as electronic mufflers, electronic ride control and remote tire pressure sensing." Joseph P. Allen, President and Chief Executive Officer of Space
Industries said, "The transaction enables Space Industries to further expand its resources, capabilities and depth as a market leader in providing the more cost-effective and customer-oriented products and services required of the aeronautics and space industries in order to be competitive in the international marketplace. With this transaction, we will create a premier research, aeronautics and space company with the vision, leadership and commitment to help shape the industry as it moves into the next century."
H. Robert Leland, president of Calspan, said, "Calspan's outstanding staff of scientists and engineers has a record of innovations and pioneering contributions in the technologies of aerospace that spans more than four decades. This new structure will greatly expand the opportunity for application of their experience and talents to the burgeoning worldwide market of commercial space." The new Space Industries will be managed by an office of the chief executive consisting of Baker, Allen and Leland, and David H. Langstaff, chief operating officer of Space Industries. Consummation of the transaction is subject to regulatory approvals and the approval of the boards of Arvin and Space Industries, as well as the shareholders of Space Industries. Arvin Industries, Inc. is an international manufacturing company supplying automotive parts and related products and services in more than 100 countries throughout the world. -0- 9/1/92 /CONTACT: John Brown of Arvin Industries, 812-379-3389 or Lisa Ehrler of Space Industries International, Inc., 713-538-6000/ (ARV) CO: Arvin Industries, Inc.; Space Industries International, Inc. ST: Indiana, Texas IN: ARO SU: JVN
KK -- CL003 -- 5290 09/01/92 09:30 EDT
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|Date:||Sep 1, 1992|
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