GENSTAR CAPITAL ACQUIRES PRESTOLITE
GENSTAR CAPITAL ACQUIRES PRESTOLITE SAN FRANCISCO, Nov. 5 /PRNewswire/ -- San Francisco-based Genstar
Investment Corporation announced that its affiliate Genstar Capital Corporation acquired substantially all of the assets and assumed certain of the liabilities of Prestolite Electric Incorporated for approximately (U.S.) $52 million.
Prestolite, based in Toledo, Ohio, is a leading manufacturer of alternators, starter motors, DC traction motors and electrical components with manufacturing facilities in the U.S. and Europe. Prestolite's annual revenues are (U.S.) $150 million. Its products are sold under the trade names Prestolite, Leece-Neville, Load Handler and Trek Star. The business will continue to operate under the Prestolite names. Prestolite has been operating under the protection of Chapter 11 of the U.S. Bankruptcy Code since February 1990. Richard D. Paterson, Prestolite's new chairman and a principal of Genstar, was pleased with the acquisition and looks forward to a bright future for Prestolite. "The company's capital structure gives it the financial strength necessary to emphasize quality, focus on customer service, and expand market share." A new chief executive, respected in the markets served by Prestolite, will be hired shortly and will assume operating responsibility from John B. Kelly, a crisis manager affiliated with Osnos & Glass Associates, Inc. "We have great confidence in the future of the company and the existing operating management," Paterson stated. John Kelly was delighted with how things have turned out. "This is the best possible outcome for Prestolite. Genstar and its principals are experienced business executives who, I am sure, will be able to build the company into a stronger business than ever before." Prestolite is the fourth acquisition completed by Genstar Capital within the last year and increases consolidated revenues to approximately $700 million on an annual basis. Genstar views the current economic recession as an excellent time to be acquiring basic businesses which can benefit from the operating expertise of the principals of Genstar Capital Corporation. -0- 11/5/91 /CONTACT: Flora Gee of Genstar, 415-788-1970/ CO: Genstar Capital Corporation; Prestolite Electric Incorporated ST: California, Ohio IN: CPR SU: TNM KD -- NY006 -- 1101 11/05/91 09:01 EST
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|Date:||Nov 5, 1991|
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