Collins & Aikman Announces Letter of Intent to Acquire Becker Group LLC

    TROY, Mich.--March 21, 2001--Collins & Aikman Corporation announced today that it has signed a letter of intent to acquire the Becker Group LLC (Becker), a leading supplier of plastic components to the automotive industry, with fiscal 2000 sales of approximately $235 million and EBITDA of $29 million. Under terms of the letter, Collins & Aikman will purchase all of the operating assets and equity interests of Becker. Consideration is expected to include $60 million in cash, an $18 million non-compete agreement (paid out over five years), 17 million shares of Collins & Aikman common stock and warrants for 500,000 shares at an exercise price of $5.00 per share. Completion of the transaction is subject to normal terms and conditions, including negotiation of definitive documentation, and it is expected to close within approximately 60 days. Once completed, the addition of Becker is anticipated to enhance Collins & Aikman's "Mega Tier Two" supplier position, via a significant increase in the scale of the Company's plastics business and strengthened relationships with the world's leading automotive interior integrators.
    Upon completion of the transaction, Chuck Becker, principal owner of the Becker Group, will join the Collins & Aikman Board of Directors as Vice Chairman. Becker is a skilled and successful veteran of the automotive plastics industry, who brings to the combined companies extensive product knowledge and strong customer relationships.
    Commenting on the transaction, Thomas E. Evans, Collins & Aikman's Chairman and Chief Executive Officer stated, "We are extremely excited about our pending transaction with the Becker Group. Our initial analysis shows that the combination of Becker and Collins & Aikman provides us with an opportunity to more than double our North American plastics business within a few years, while simultaneously providing both Collins & Aikman and our customers with a host of synergistic benefits. We look forward to completing this transaction, welcoming Chuck Becker and his team to our Company, further strengthening our relationships with the major Tier One integrators and continuing the transformation of Collins & Aikman into a world-class 'Mega Tier Two' automotive supplier."