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MS/ESSEX HOLDINGS ENTERS INTO MERGER AGREEMENT

 MS/ESSEX HOLDINGS ENTERS INTO MERGER AGREEMENT
 NEW YORK, July 24 /PRNewswire/ -- MS/Essex Holdings Inc. disclosed


today that it has entered into a definitive merger agreement providing for its acquisition by a group led by Bessemer Capital Partners L.P., an affiliate of Bessemer Securities Corporation, for an aggregate consideration of approximately $525 million, including debt assumed or refinanced.
 Under the agreement, the current shareholders of MS/Essex Holdings will receive an aggregate of $157 million for their equity interests in the company subject to certain adjustments. Consummation of the agreement is subject to the satisfaction of various conditions and is expected to occur by the end of September. The Morgan Stanley Leveraged Equity Fund II, L.P., which owns a majority of the company's outstanding common shares, has agreed to vote in favor of the merger.
 MS/Essex Holdings is a holding company which owns Essex Group, Inc., based in Fort Wayne, Ind. Essex, one of the world's largest producers of electrical wire and cable products, had 1991 revenues of $886 million.
 Chemical Bank has committed, subject to certain conditions, to underwrite a $265 million senior loan facility to Essex Group, a portion of which would be used to repay existing senior bank debt. The 12-3/8 percent senior subordinated debentures of Essex Group and the 16 percent senior discount debentures of MS/Essex Holdings will remain outstanding at closing.
 Donaldson, Lufkin & Jenrette, Inc. has committed that it, through one or more of its affiliates, including DLJ Merchant Banking Partners, L.P., will purchase up to $50 million of preferred stock and common stock warrants, subject to certain conditions. Bessemer Capital Partners has committed to purchase the majority of the equity of MS/Essex Holdings. It is expected that Essex management will make a substantial investment in the company's common stock.
 -0- 7/24/92
 /CONTACT: Jeanne Andrews of Morgan Stanley & Co. Incorporated, (212) 703-4058/ CO: MS/Essex Holdings Inc.; Bessemer Capital Partners L.P. ST: Indiana IN: SU: TNM


LR -- NY047 -- 3077 07/24/92 14:04 EDT
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Date:Jul 24, 1992
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