Bienes Turgon and Katcon Announce the Closing of the First Stage of the Acquisition of Delphi's Global Exhaust System Business
MONTERREY, Mexico, May 5, 2009 -- Bienes Turgon, S.A., a holding company based in Monterrey, Mexico with presence in the automotive industry, through Katcon in Mexico and Venezuela, announces that, in accordance with the proposed schedule, it has successfully closed the first stage of the acquisition of Delphi's global business of catalytic converters and exhaust systems. This achievement takes place in an environment of growing opportunities and under a financial plan that represents a winning model for the company's shareholders, employees, and suppliers.
This first stage includes the formal acquisition of assets, contracts, and working capital of manufacturing plants located in Poland, Australia, and South Africa. Additionally, it includes the transfer of intellectual property, patents, and technical centers in Luxembourg and Michigan, and the share participation of Delphi in Katcon (Mexico). In a second and final stage, Bienes Turgon will take over the working capital, assets, contracts, and manufacturing plants located in India and China.
This strategic investment allows the new company, Katcon Global, to consolidate in the automotive industry, accomplishing the following objectives:
-- Opportunity to align the acquired organization with a successful, proven, flexible, and highly competitive business model to secure future growth with existing and new customers.
-- Ability to offer products ranging from exhaust system components to complete exhaust systems including catalytic converters, Diesel Particulate Filters (DPF), Diesel Oxidation Catalyst (DOC), Selective Catalytic Reduction (SCR), hot and cold-end modules, manifold converters, and mufflers for diesel, hybrid and gasoline applications, developed by one of the most experienced engineering teams in the market.
-- Consolidate global presence with 6 manufacturing plants, located in Mexico (2), Venezuela, Poland, Australia, and South Africa. China and India will be joining within 3 months, allowing the company to compete in developed markets and take advantage of emerging markets in developing countries.
-- From these plants we will supply more than 60 client facilities around the globe with a wide variety of products and the possibility of growth in other markets and with other clients that seek the best technology, quality, and price.
-- Become a world leader in the automotive exhaust systems industry with extensive technical and engineering capabilities, intellectual property, and R&D centers in Michigan and Luxembourg, as well as very valuable engineering and manufacturing experience.
-- Capability to expand product offerings beyond traditional automotive exhaust applications utilizing the substantial acquired engineering assets.
-- With this acquisition and based on the new global business plan, we will invest aggressively in technology, qualification in design and modeling, and the creation of an additional prototype facility in Mexico.
-- We increase our flexibility to establish strategic alliances and joint ventures around the globe.
We are certain that our clients, suppliers and employees will receive this news positively and that we will maintain their support and commitment in the future.