Collins & Aikman Advances Auto Interior Trim Growth Strategy; Will Acquire Larizza Industries, Inc.'s Manchester Plastics Molded Interior Components and Systems Business.CHARLOTTE, N.C.--(BUSINESS WIRE)--Sept. 26, 1995--Collins & Aikman Corporation (NYSE NYSE See: New York Stock Exchange :CKC CKC Canadian Kennel Club CKC Chiang Kai-Shek (former leader of the Republic of China) CKC California Kiwifruit Commission CKC Cool Kids Club CKC Cairo Kidney Center CKC Cold Knife Cone (biopsy) ) announced today the first step of a comprehensive strategy to accelerate the growth of its automotive interior trim business. Pursuant to a definitive merger agreement to acquire Larizza Industries, Inc. (AMEX AMEX See: American Stock Exchange :LII Adj. 1. lii - being two more than fifty 52, fifty-two cardinal - being or denoting a numerical quantity but not order; "cardinal numbers" ), Collins & Aikman will add a broad range of molded plastic products to its current $800 million portfolio of textile-based automotive trim products. Manchester Plastics, a maker of automotive door panels, headrests, floor console systems and instrument panel components, is the sole operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon of Larizza Industries, Inc. Manchester is a leading designer and manufacturer of high quality plastics-based components and systems used in the interior of automobiles, light trucks, sport utility vehicles This page lists sports utility vehicles currently in production (as of April 2007), as well as past models. The list includes crossover SUVs, Mini SUVs, Compact SUVs and other similar vehicles. and minivans. It serves the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. automakers from eight manufacturing plants in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada. Under the agreement, Collins & Aikman will purchase all Larizza's shares at $6.50 cash per share, for a total purchase price of $144 million. In addition, Collins & Aikman will extinguish Extinguish Retire or pay off debt. approximately $30 million of existing Larizza debt. The agreement is subject to the approval of Larizza shareholders and other customary conditions. Ronald T. Larizza, chairman and chief executive officer of Larizza, has voting control over 50.6 percent of Larizza's 22.1 million outstanding shares and has agreed to vote those shares in favor of the merger. Larizza's Board of Directors has approved and will recommend that its shareholders accept the proposed transaction. Collins & Aikman said it will finance the acquisition through additional bank borrowings. "We expect that Manchester's current sales of about $180 million will grow rapidly during the next several years due to significant new business booked with General Motors, Ford and other automakers," said Thomas E. Hannah, chief executive officer of Collins & Aikman. Manchester's sales per North American vehicle build have risen from $8 in 1991 to $12 currently. Based on booked business, sales are currently projected to reach nearly $20 per vehicle by the end of the decade. "Manchester's high quality product line, its well-equipped production facilities and its strong management and engineering team will form an excellent fit with our existing market-leading automotive interior lines Interior lines is a strategy of warfare that is based on the concept that lines of movement within an area are shorter than those on the outside. Using the strategy of interior lines, a surrounded power could make a series of surprise attacks on the power that is encircling it, and ," Hannah added. Collins & Aikman supplies the North American auto industry with interior trim products that include floor carpets, floor mats, luggage compartment trim, seat fabrics and convertible top systems. "The Manchester acquisition will deepen our product line and also complement the other dimension of our automotive growth strategy," Hannah said, "which is to develop European production capabilities for both existing and new product lines. Our goal is to serve our global automotive customers with the same quality and engineering and design capabilities on both continents." Hannah continued, "Edward W. Wells, president of Manchester, will continue to run the Manchester operations and work with Collins & Aikman to enhance the combined product portfolio." "The unique fit between Collins & Aikman and Manchester should provide customers with a broader product offering for the interior of the vehicle, a global manufacturing presence and an excellent platform for future growth," added Wells. Collins & Aikman is a leader in each of its three business segments. In Automotive Products, it is the largest supplier of its five basic interior trim products to the North American auto industry. In Interior Furnishings, it is the largest manufacturer of residential upholstery fabrics and six-foot commercial carpet in the United States. In Wallcoverings, it is the largest U.S. producer of residential wallpaper. Within these three segments, the company holds a number one or number two position in each of its eight major product lines, which together comprise more than 80 percent of its total net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight . CONTACT: Collins & Aikman Corporation Steven R. Bower, 704/548-2382 |
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