NINE COMPANIES IN U.S., 11 IN CANADA ACQUIRED BY MB-CARADON OF U.K. IN $1.2 BILLION PURCHASE OF 50 BUSINESSES FROM RTZ CORP. OF U.K.
/NOTE TO EDITORS: This $1.2 billion acquisition concluded today, includes nine U.S. companies with 3,900 employees; 11 Canadian companies with 2,300 employees. U.S. plants are located in: Fredericksburg, Va.; Barberton, Ohio; Norcross and Gainesville (2), Ga.; Mountaintop and Punxsutawney, Pa.; Gulfport and Pelahatchie, Miss.; Smyrna, Tenn.; and Prescott Valley, Ariz. MB-Caradon's North American head office is in Westport, Conn./ LONDON, Oct. 20 /PRNewswire/ -- A giant building/industrial products company, with 20 new manufacturing subsidiaries or divisions in the United States and Canada, and 30 new operations in the U.K. and continental Europe, emerged today with the completion of the US$1.2 billion (800 million pounds sterling) acquisition by MB-Caradon plc (London Stock Exchange: MBX) of approximately 50 businesses from The RTZ Corporation PLC (NYSE: RTZ; London Stock Exchange). MB-Caradon, which also includes major security printing operations in the U.S., becomes the largest U.K. producer of fabricated building products. "Now, with the broad range of products, and with plants spanning the U.S., Canada, the U.K. and Europe, the new, enlarged MB-Caradon is well- positioned to serve the residential and commercial building, automotive and other industrial markets on two continents," declared Peter Jansen, chief executive officer. In North America, the 20 business units acquired (nine in the U.S. and 11 in Canada) have approximately 6,200 employees (3,900 in the U.S. and 2,300 in Canada). The total acquisition, including acquired companies in the U.K. and Europe, more than doubles the number of MB-Caradon employees. MB-Caradon also reported that, having received the approval of its board and shareholders, the company will change its name to Caradon plc on Oct. 29. Based on 1992 audited figures, the acquisition more than doubles the size of the company. MB-Caradon had sales of $1,195 million (664.4 million pounds) in 1992. Sales of the companies acquired from RTZ totaled $1,766 million (981.2 million pounds) last year. MB-Caradon financed the acquisition with proceeds of a recent, successful $509 million (334 million pounds) one-for-four equity rights issue, and $708.4 million (467 million pounds) received earlier this year for the sale of its 25.3 percent stake in the French-based CarnaudMetalbox packaging group. As a result of the acquisition, the number of MB-Caradon employees increases from about 10,000 to an estimated 25,000, including employees of the acquired companies. The new MB-Caradon companies have 11 plants in the U.S., and 22 in Canada (see list below). The acquisition includes residential construction products businesses, automotive parts, aviation-related and technology companies, metal rollforming, extrusion and recycling operations. The acquired companies in the U.S. and Canada, which include those that were part of Indal Limited, RTZ's Toronto-based North American arm, Mr. Jansen said, will report to Tim Walker, an MB-Caradon managing director who is responsible for North American operations and a member of the company's main board. Before his appointment to this position last May, Mr. Walker was chief executive of the company's Building Products Division, with about 30 years of experience in the building/construction field. "We believe that we can enhance the progress of the acquired companies, because their operations are very similar to our core businesses," Mr. Jansen pointed out. "We know well how to manage our businesses so they produce high-quality products which bring value to the marketplace, our customers, our employees and our shareholders. "By more than doubling our size, we expand the opportunity to apply our operational and management skills to a number of companies which are leaders in their fields. About 84 percent of the acquired companies operate in areas close to our own businesses," he added. Mr. Walker said, "We welcome the opportunity to extend our related experience to these fine companies in the U.S. and Canada. "We will continue our emphasis on excellence in products and customer service. Our clear objective is to grow the businesses profitably," he stated. MB-Caradon's existing U.S. head office in Westport, Conn., will be expanded to embrace the requirements of the additional businesses acquired in North America. The Canadian operations will continue to report to a chief operating officer located in Toronto. Products and services of the new companies include: In the U.S.: wood, PVC-U and aluminum prime and storm windows and doors, door bells and chimes, advanced building controls, aluminum extrusions, automotive frame and chassis assemblies, and residential replacement windows. In Canada: steel entry and bi-fold closet doors, tub and shower enclosures, residential door and patio window products, aluminum castings, automotive stampings and fabricated auto parts, aluminum recycling and billet casting. Current products of MB-Caradon include replacement windows, high- efficiency radiators and boilers, residential and commercial showers, plumbing and drainage systems, bathroom showers and fixtures, and cellular PVC-U building products. Non-building products include body trim parts for automobiles, plastic components for electronic equipment and tanks for washing machines. The North American businesses were acquired principally by MB- Caradon's purchase, in a private transaction, of all outstanding shares of Indal Limited, which is headquartered in Toronto. Following is a list of the acquired companies with the locations of their facilities: United States Residential Better-Bilt Aluminum Products Co. Smyrna, Tenn., and Prescott Valley, Ariz. -- Aluminum patio and storm doors, aluminum prime and storm windows, aluminum screen doors. North American Die Casting Corp. Fredericksburg, Va. -- Zinc die cast products. Peachtree Doors Inc. Norcross and Gainesville, Ga. -- Residential doors and windows. Season-all Industries, Inc. Pelahatchie, Miss. Residential windows and doors. Thermal-Gard Punxsutawney, Pa. -- Residential replacement windows and doors. Industrial Indal Aluminum Gulfport Gulfport, Miss. -- Aluminum recycling and billet casting, and aluminum extrusions and fabrication. Indalex Gainesville, Ga. -- Aluminum extrusions, finishing and fabrication. Mideast Aluminum Industries Mountaintop, Pa. -- Aluminum extrusions, finishing and fabrication. Novar Controls Corporation Barberton, Ohio -- Advanced building controls. Canada Residential Decor Doors Kelowna, British Columbia -- Steel entry and bi-fold closet doors. Indal Consumer Products Mississauga, Ontario -- Storm and patio door hardware, aluminum ladders and tub and shower enclosures. Lock-Wood Scoudouc, New Brunswick, and Weston, Ontario -- Residential door and patio window products. Indal Building Products Calgary and Edmonton, Alberta; distribution centers: Medicine Hat and Red Deer, Alberta; Saskatoon, Saskatchewan -- Aluminum, vinyl and wood prime windows, patio doors and insulating glass units. Peachtree Doors Canada Weston, Ontario -- Residential insulated steel door entry systems. Non-residential Indal Metals Edmonton, Alberta; Mississauga, Ontario; Saskatoon, Saskatchewan; and Delta, British Columbia -- Cold, rollformed steel and aluminum products, including industrial and agricultural roofing and siding and grain storage bins. Industrial Brampton Foundries Limited Brampton, Ontario -- Aluminum castings for general industrial applications. Fabricated Steel Products Windsor, Ridgetown and Dresden, Ontario -- Automotive stampings and fabricated auto parts. Indal Technologies, Inc. Guelph and Mississauga, Ontario -- Design engineering, structural products, shipboard helicopter hangars, helicopter hauldown and rapid securing systems, marine sonar handling systems and aerospace thermal insulation. Indalex Mississauga, Ontario; Pointe Claire, Quebec; Calgary, Alberta; and Port Coquitlam, British Columbia -- Aluminum extrusions, finishing and fabrication. Indalloy North York, Ontario -- Aluminum recycling and billet casting. -0- 10/20/93 /CONTACT: Norman Schorr or Martha Megill of Schorr, Howard and Megill, 212-935-5555, for MB-Caradon/ (RTZ)
CO: MB-Caradon plc; The RTZ Corporation PLC ST: IN: CST SU: TNM
SH-TW -- NY019 -- 4474 10/20/93 10:22 EDT
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|Date:||Oct 20, 1993|
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