Adams Thermal Systems Acquires Behr's South Dakota Plant

CANTON, S.D.--Nov. 1, 20037, 2003--Behr America's Canton, South Dakota, manufacturing plant will be sold to a locally-owned firm -- Adams Thermal Systems Inc.

Frank Mueller, vice president and CFO of Behr America, Inc., said the sale will become official on January 1. The announcement was made at a media conference at the plant attended by Jamison Rounds, South Dakota director of the Governor's Office of Strategic Initiatives; City of Canton Mayor Pete VanWhye, and Bob Lier, president of the Canton Economic Development Corporation.

The 121,000-square-foot facility at 47920 Fifth Street has 200 employees and produces a variety of engine cooling components, including oil coolers, condensers and fuel coolers. The purchase also includes a 10,000-square-foot warehouse and parts distribution center leased by the company in Cedar Falls, Iowa. The parts center has 4 employees.

Mike Adams, who currently serves as engineering manager at the Canton plant, is the president and CEO of Adams Thermal Systems. Adams noted that employment at the plant will not be affected by the sale and the facility's current management team will remain in place.

"Behr has agreed to work very closely with us to further improve customer satisfaction and the overall efficiency of the plant," Adams said. "We will continue to supply a number of parts to Behr and its customers and in time we actually hope to increase employment."

Mueller added, "We see a bright future for Adams Thermal Systems and our Canton employees. A primary consideration in this transaction has been the job security and welfare of our Canton employees. Under this agreement, Adams Thermal Systems will be able to better dedicate service to our current agricultural and off-highway customers, while allowing Behr to focus on its core business in North America's heavy-truck and light-vehicle markets."

The Canton plant became part of Behr's manufacturing network under a joint-venture agreement with Cummins Inc. in 1993. Behr took full ownership of the facility in 2000. The plant serves a number of automotive, agricultural and heavy-equipment customers, including AM General, Cummins, Freightliner, General Motors, John Deere, CNH, AGCO and DaimlerChrysler.

"The sale to Adams Thermal Systems will insure the continued operation of the Canton plant and provides opportunities for future growth," said South Dakota Governor Mike Rounds. "We look forward to working with this new company as it expands and further develops its business in the future."

The governor added that the success of the state's economic development vision "relies on the creation of quality jobs that will retain our youth and grow our economy. The local purchase of this Behr facility led by Mike Adams and helped by partnerships between state and local economic development groups is a perfect example of how we can put this vision for success into action."

Behr America is a leading automotive supplier of engine cooling modules and components, Visco fan assemblies and air conditioning systems. With the addition of a new plant in Ohio in 2002, North American sales for 2002 were $684 million. The company has about 3,000 total employees in production facilities in Troy and Webberville, Michigan; Dayton, Ohio; Charleston, South Carolina, and Fort Worth, Texas.

Behr America is part of Stuttgart, Germany-based Behr GmbH & Co. KG, its parent company and a systems partner for the international automobile industry. A specialist for automotive air conditioning and engine cooling systems, the Behr Group is one of the world's leading manufacturers and suppliers of original equipment for passenger and commercial vehicles.

Group sales in the 2002 business year came to about $3.2 billion (2.8 billion euros). Currently Behr employs more than 16,000 people in 25 worldwide production facilities in Europe, North and South America, South Africa and India. It operates two joint ventures in Japan and is currently expanding its presence in the Chinese market. Additional company information is available on the Internet at www.behrgroup.com.