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LARIZZA INDUSTRIES, INC. ANNOUNCES AGREEMENTS IN PRINCIPLE WITH ANDOVER PLASTICS AND A $54 MILLION DEBT CONVERSION

 TROY, Mich., June 14 /PRNewswire/ -- Larizza Industries, Inc. (AMEX: LII), an original equipment supplier to the automotive industry, today announced an agreement in principle under which Andover Plastics (Andover) would be combined with Larizza Industries, Inc. (Larizza). The consideration to be paid by Larizza for the combination would be 3 million shares of Larizza common stock. For additional consideration, Larizza will obtain certain non-compete and management services agreements.
 Andover, a supplier of plastic based interior and exterior automotive components, had sales of $50,800,000 and was profitable in its fiscal year ended July 25, 1992. Andover expects sales of approximately $60 million and to be profitable for the fiscal year ended July 31, 1993. Andover is an industry leader in the area of low- pressure composite injection molding.
 In conjunction with the combination, the company has signed a non-binding letter of intent with its banks under which the banks would convert approximately $54 million of principal and accrued interest into 41.5 percent of the common stock of the combined Larizza/Andover Company.
 According to Ronald T. Larizza, chief executive officer of Larizza Industries, Inc., "The combination of Andover and Larizza, along with the debt conversion, will result in Larizza having annualized sales in the range of $200 million and a significantly stronger balance sheet. In addition, the combination fits the company's long-term strategy of growth. Andover will expand Larizza's product line to include exterior products with advanced technology in Class A painting. Also, as an industry leader in low-pressure composite injection molding technology, Andover will enhance Larizza's interior trim capabilities."
 Both the combination and the debt conversion are subject to the negotiation of definitive agreements.
 -0- 6/14/93
 /CONTACT: Terence C. Seikel, chief financial officer, Larizza Industries, Inc., 313-689-5800/
 (LII)


CO: Larizza Industries, Inc.; Andover Plastics ST: Michigan, Ohio IN: AUT SU: TNM

DD -- DE030 -- 1736 06/14/93 15:06 EDT
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Publication:PR Newswire
Date:Jun 14, 1993
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