Nitto Americas Acquires AcoustiSeal

    KANSAS CITY, Mo.--Dec. 16, 2002--The U.S. subsidiary of a global manufacturing corporation, Nitto Denko of Japan, has purchased Kansas City-based AcoustiSeal with plants here and in St. Louis and a technical center in suburban Detroit.
    AcoustiSeal is a $72-million manufacturer of acoustic and sealant products used primarily in automotive production to reduce noise and vibration. The company, which had declared bankruptcy earlier this fall, was acquired for $20 million by Nitto Denko's wholly owned U.S. subsidiary, Pleasant Prairie, Wis.-headquartered Nitto Americas, Inc.
    "This is a vital addition to Nitto Denko's family of companies," said William Hayes, Nitto Americas President and Chief Executive Officer. "AcoustiSeal's product line is a great fit in Nitto Denko's worldwide automotive industry-focused business."
    AcoustiSeal's Kansas City headquarters and plant are located in an Enterprise Zone that was developed to encourage businesses to relocate to the economically challenged inner-city area. Most plant workers are residents of surrounding neighborhoods. The St. Louis plant is located in a similar environment. All of the company's three locations, including its technical center in Troy, Mich., will continue functioning where they are, officials said.
    "Despite the soft economy and the turn-around effort we are mounting to make this a profitable endeavor, we are keeping people employed," said Hayes. "Under the terms of the purchase, we've accepted the company's 500-plus employees."
    Officials anticipated rapidly integrating AcoustiSeal into the Nitto Americas family of companies -- specifically Permacel's automotive unit -- and to leverage its product line to enhance the group's corporate portfolio.
    "We anticipate it will entail tremendous effort by our entire team, but because of the synergies the company represents to Nitto Denko, we foresee no major problems as we aggressively address improving its financial and market strength," said Hayes. "With Nitto Denko resources to help, this company will see substantive growth in a relatively brief timeframe."
    Added Brian Brace, Business Unit Director with Nitto Americas-owned Permacel: "AcoustiSeal's products meld beautifully with those of other Nitto Denko companies. Now, we not only provide cost-efficient sealing and adhesive materials for the automotive industry, we complement those products with acoustical materials for complete vehicle noise and vibration control. It's a great strategic fit."
    With the acquisition of AcoustiSeal, Nitto Americas represents $375 million in revenue, $255 million in assets and 1,700 employees in the U.S. focusing on the automotive, electronics, medical, membrane, electrical, industrial, bonding, and retail and industrial identification industries. The Nitto Americas family of companies includes New Brunswick, N.J.-based Permacel, Hydranautics, headquartered in Oceanside, Cal., Graphic Technology, Inc., in New Century, Kan., and Nitto Denko America in Fremont, Cal.

    Founded in 1918, Nitto Denko, headquartered in Osaka, Japan, is a $3 billion global manufacturing leader focused in specialty industrial markets, with its primary focus in the automotive, electronics and medical industries. The company employs nearly 11,000 people at its manufacturing locations and sales offices in North and South America, Europe, Australia, Japan, China and other Asian locations. Nitto Denko is traded on the Tokyo Stock Exchange, First Section, the Osaka Stock Exchange, First Section, and the Nagoya Stock Exchange, First Section.