Hawk Announces Acquisition of Tex Racing Enterprises, Inc.
1 November 2000Hawk Announces Acquisition of Tex Racing Enterprises, Inc.
Expands Position in Motorsports and Performance Automotive Markets CLEVELAND, Nov. 1 Hawk Corporation announced today that it has acquired Tex Racing Enterprises, Inc., a leading manufacturer of premium branded drive train components for motorsports and performance automotive markets. The products are used by leading teams in the NASCAR racing series, as well as for high-performance street vehicles, and other road race and oval track competition cars. Tex Racing, located in Ether, North Carolina, was founded in 1975. The company had 1999 sales of $7.9 million. William "Tex" Powell will continue as president of Tex Racing under Hawk's ownership. "The acquisition of Tex Racing reflects another expansion of our motorsport and automotive performance business," said Ronald E. Weinberg, Hawk Corporation Co-Chairman and Co-CEO. "The acquisition of Tex Racing complements the businesses that form the Hawk Performance Group, headed up by Rob Nelson, which also includes Quarter Master, a manufacturer of premium clutch assemblies for racing cars, and Hawk Brake, which provides high durability brakes for racing and other markets. Under Rob's leadership, the performance group provides us with a platform to broaden our customer base and offer new products in the high-performance automotive markets." Terms of the transaction were not disclosed. Hawk will finance the transaction with available cash. Hawk Corporation is a leading worldwide supplier of friction products for brakes, clutches and transmissions used in airplanes, trucks, construction equipment, farm equipment and recreational vehicles. Hawk also is a leading supplier of powder metal components for industrial applications, including pump, motor and transmission elements; gears; pistons; and anti-lock brake sensor rings. The Company designs and manufactures die-cast aluminum rotors for small electric motors used in appliances, business equipment and exhaust fans; and clutch assemblies for the high performance racing markets. Headquartered in Cleveland, Ohio, the Company has 1,600 employees and 13 manufacturing sites in four countries. This press release includes forward-looking statements that involve risks and uncertainties. Actual results and events may differ significantly from those projected in the forward-looking statements. These statements are subject to a variety of uncertainties, unknown risk and other factors concerning the Company's operations and business environment, including, but are not limited to: changes in end markets served by the Company; the effects of competition by manufacturers using new or different technologies; and the continuity of business relationships with major customers. There is no assurance that Hawk will be able to successfully integrate Tex Racing Enterprises, Inc. into its existing business, or that Tex Racing Enterprises, Inc. will achieve results comparable to Hawk's existing businesses. Hawk Corporation financial results and news releases are available on-line at: http://www.hawkcorp.com .