AUTOMOTIVE INDUSTRIES HOLDING, INC. ANNOUNCES AGREEMENT TO ACQUIRE ASAA INTERNATIONAL, INC.
MINNEAPOLIS, March 11 /PRNewswire/ -- Automotive Industries Holding, Inc. (NASDAQ: AIHI) today announced that, through a wholly owned subsidiary, it has entered into a definitive agreement to acquire ASAA International, Inc., (ASAA). The agreement is subject to certain conditions, including Hart-Scott-Rodino approval. ASAA, headquartered in Sheboygan, Wis., is a privately held company that designs and manufactures interior trim components for the North American car, mini van and light truck manufacturers. Its manufacturing facilities in Sheboygan, and Lebanon, Va., produce door panels and inserts, rear shelves, headliners, trunk liners and other interior trim products. ASAA manufactures certain of its products using a proprietary process known as Wood-Stock. In addition, the company has production programs utilizing low pressure molding, glass reinforced urethane and a proprietary headliner process. William H. Clement, chief executive officer of Automotive Industries Holding, Inc., said, "The acquisition of ASAA is consistent with our strategy of acquiring companies with technical capabilities and product lines that increase our ability to supply customers with total interior systems. ASAA's technologies, products and vehicle penetration are an excellent complement to those of Automotive Industries. Combining resources will allow us to offer our customers an even wider range of interior trim products, as well as alternative technologies." Clement added that "A real strength of ASAA is its people and systems. No substantial changes in operations or personnel are contemplated." For the year ended Dec. 31, 1992, ASAA reported sales of $65.3 million and operating profits before interest, taxes and amortization of $8.6 million. ASAA expects sales and profits to be at lower levels in 1993, as certain production programs balance out, but to rebound in 1994 as new programs commence. ASAA has been awarded significant new programs to supply door panels and inserts on several future redesigned models in years 1994 to 1996. The aggregate purchase price, including the assumption of certain indebtedness, is $42 million, plus a contingent payout if ASAA achieves certain operating income levels through 1996. The acquisition will be financed through Automotive Industries' existing credit facilities and the issuance of approximately $9 million in preferred stock exchangeable into AIHI common stock. The transaction is expected to be completed in the second quarter of 1993. Automotive Industries Holding, Inc., through its subsidiary Automotive Industries, Inc., is a leading designer and manufacturer of high quality interior trim systems and blow molded plastic parts principally for North American car, mini van and light truck original equipment manufacturers. Revenues for the year ended Dec. 26, 1992, totaled $272.4 million. Principal customers include Ford, Chrysler and General Motors, as well as several Japanese companies manufacturing automobiles in the United States. The Company's interior trim products include complete door panel assemblies, arm rests, consoles, and head rests. Blow molded products include seat backs and inserts, windshield washer bottles, gas tank shields and radiator coolant overflow reservoirs. The Company maintains a corporate office in Minneapolis and Automotive Industries, Inc., is headquartered in Strasburg, Va. -0- 3/11/93 /CONTACT: Scott Rued of Automotive Industries, 612-332-6828, or John Mackay of Padilla Speer Beardsley, 612-871-8877, for Automotive Industries/ (AIHI)
CO: Automotive Industries Holding, Inc.; ASAA International, Inc. ST: Minnesota, Wisconsin IN: AUT SU: TNM
DS -- MN005 -- 4975 03/11/93 08:55 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Mar 11, 1993|
|Previous Article:||KAHLER CORPORATION TO REPURCHASE SHARES|
|Next Article:||FES UNIT RECEIVES $1.6 MILLION ORDER FOR REFRIGERATION SYSTEMS|