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 SOUTHFIELD, Mich., Sept. 16 /PRNewswire/ -- Federal-Mogul Corporation (NYSE: FMO) and SPX Corporation (NYSE: SPW) announced jointly today that they have signed a definitive agreement under which Federal-Mogul will acquire Sealed Power Replacement, a division of SPX that distributes engine and chassis components to the North American automotive aftermarket.
 In connection with the acquisition, Federal-Mogul and SPX also entered into a long-term trademark agreement making Federal-Mogul the exclusive distributor of engine and chassis parts sold under the Sealed Power and Speed-Pro brand names in North America.
 Sealed Power Replacement has annual sales of more than $163 million and approximately 530 employees. Its full line of engine parts includes piston rings, valve lifters, pistons, sleeve assemblies and numerous other components. The division's chassis parts include conventional steering components, constant velocity joints, rack and pinion assemblies and related parts. Sealed Power Replacement distributes a complete line of more than 60,000 parts to customers through its 36 regional distribution centers in North America and a Master Distribution Center near Memphis, Tenn.
 Federal-Mogul will initially finance the transaction, valued at approximately $150 million, through a combination of cash on hand and bank debt. The agreement is expected to close by Oct. 31, 1993, subject to regulatory approval. Permanent financing may include debt or equity issues.
 "The acquisition of Sealed Power Replacement further demonstrates Federal-Mogul's commitment to the worldwide vehicular aftermarket business," said Dennis J. Gormley, chairman and chief executive officer of Federal-Mogul. "Combining the talent and expertise of Federal-Mogul and Sealed Power Replacement enhances the company's ability to serve our aftermarket customers.
 "The acquisition also offers substantial synergies between our existing operations that will allow for significant savings and improvements in the efficiencies of each business," he continued. "We are very excited about this opportunity."
 With the acquisition of Sealed Power Replacement, the aftermarket will represent approximately 65 percent of Federal-Mogul's sales. The company relies on a sophisticated distribution network to make available approximately 75,000 part numbers to almost 10,000 customers in more than 90 countries around the world. Its aftermarket offering includes engine and transmission products, steering and suspension parts, ball and roller bearings, sealing devices, lighting and electrical components, and a variety of fuel system components.
 Dale A. Johnson, chairman and chief executive officer of SPX, said, "The sale of Sealed Power Replacement is another strategic step in the company's transformation into a business focused upon global market leadership in the design, production and marketing of specialty service tools and engineered components for the motor vehicle industry.
 "We are dedicated to being the global leader in our markets," he said. "Furthermore, we are convinced that continued growth in our selected specialty tool and engineered component product/market sectors requires focused leadership and prudent allocation of resources, all geared to a commitment to build shareholder value over the long term."
 Johnson added, "SPX has been marketing replacement parts since 1920. And while it is always difficult to part with a quality operation like Sealed Power Replacement, the combination with Federal-Mogul's worldwide distribution business will provide an ideal place for the Sealed Power name to grow in the automotive aftermarket."
 Headquartered in Southfield, Federal-Mogul is a global distributor and manufacturer of a broad range of precision parts primarily for automobiles, light trucks, heavy trucks, and farm and construction vehicles. The company serves both the aftermarket and the original equipment market providing quality products -- as they are needed -- to customers around the world. Federal-Mogul operates 32 plants, more than 70 distribution centers and four major research centers worldwide.
 SPX, headquartered in Muskegon, Mich., is a leader in the design, manufacture and marketing of specialty service tools and engineered components for the global motor vehicle industry.
 -0- 9/16/93
 /CONTACT: Lonnie Ross of Federal-Mogul Corporation, 313-354-9934/

CO: Federal-Mogul Corporation; SPX Corporation;
 Sealed Power Replacement ST: Michigan IN: AUT SU: TNM

JG-ML -- DE001 -- 2540 09/16/93 08:00 EDT
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Publication:PR Newswire
Date:Sep 16, 1993

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