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Johnstown America to Acquire Imperial Group, Inc.

CHICAGO--(BUSINESS WIRE)--March 23, 1999--Johnstown America Industries, Inc. (NASDAQ: JAII) announced today that it has signed a definitive agreement to acquire Imperial Group, Inc., headquartered in Portland, Tennessee, a leading Tier I and Tier II supplier of body and chassis components for heavy-duty Class 8 truck manufacturers and transit bus manufacturers. Terms of the agreement were not disclosed. The transaction is expected to close within a month.

"Imperial is an excellent strategic fit for Johnstown America," said Thomas M. Begel, JAII chairman, president and chief executive officer. "Like our existing truck components operations, they are a market leader with an excellent reputation for product quality and service. Imperial is a top ten supplier to PACCAR with proven manufacturing expertise, broad product lines, an experienced and capable management team and strong sales growth and cash flow.

"Combining their strengths with ours will enable JAII to capitalize more fully on the opportunities that are resulting as OEMs focus increasingly on outsourcing and supplier consolidation, and we expect to use Imperial as a platform for future acquisitions. We also anticipate sales growth from synergies in marketing and distribution with our current truck components operations," he said.

Imperial fabricates a broad line of nearly 5,500 high-quality metal products, ranging from bumpers and fenders to fuel tanks. The company also provides a variety of value-added services such as chrome plating, polishing and assembly of parts and chassis. Revenues in 1998 were over $80 million and are expected to exceed $100 million in 1999. Production facilities are located in Tennessee, Texas and Washington, in close proximity to customers' manufacturing operations.

JAII, headquartered in Chicago, Illinois, has two operating segments. The Truck Components segment's current product lines include Gunite heavy-duty wheel-end components, Brillion custom iron castings, Bostrom truck and bus seating systems, and Fabco steerable drive axles and gearboxes. JAII's Freight Car segment, which includes Johnstown America Corporation, Freight Car Services, Inc. and JAIX Leasing Co., builds, rebuilds and leases freight cars used for hauling coal, autos, and agricultural and mining products.

The statements herein, which are not historical facts, including statements about future expectations, are "forward-looking statements" that involve certain risks and uncertainties that could cause actual future results to differ materially from those stated. These risks are spelled out more fully in the company's SEC filings. The company assumes no obligation to update its forward-looking statements.
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Publication:Business Wire
Geographic Code:1USA
Date:Mar 23, 1999
Words:393
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