Noble International Agrees to Purchase LWI, Inc.
WARREN, Mich., Jan. 14, 2004 -- Noble International, Inc. ("Noble") announced that it has signed a purchase agreement to acquire Laser Welding International, Inc. ("LWI"). LWI, based in Clinton Township, Michigan, is a supplier of laser-welded blanks (LWB) to General Motors. The transaction is structured as a stock purchase, subject to certain approvals and conditions, with closing expected within the next 10 days. The purchase price is not being disclosed at this time, but is expected to be initially funded by the use of borrowings under its credit facility. It is anticipated that these borrowings will be reduced by the sale of non-core assets and the use of anticipated proceeds from a federal income tax refund. The acquisition of LWI is expected to contribute approximately $35 million to revenue in 2004 and be accretive to earnings.
LWI is a leader in curvilinear welding and has produced more than one million curvilinear welds per year since 1998. Noble believes that curvilinear laser welding will become an increasingly important technology, providing substantial growth opportunities. Curvilinear laser welding is likely to increase penetration of LWBs into more vehicles due to its ability to provide a more "tailored" blank, better matching the shape of the weld to the part design and downstream processing.
Noble's Chief Operating Officer, Tim Emmitt, stated, "The acquisition of LWI provides us with advanced capabilities in curvilinear welding and significantly expands our presence with an important customer. We expect curvilinear laser welding to enable the use of laser-welded blanks for more structural components such as suspension strut towers. We plan to integrate LWI into Noble Metal Processing over the next several months and believe we have identified a number of areas in which we can substantially improve LWI's profitability."
Jay J. Hansen, Chief Financial Officer, commented on the transaction, "We believe that using non-core asset sales and the tax refund to reduce borrowings for the LWI purchase enhances shareholder value by converting non- core assets into higher-performing, accretive operations. As we have previously indicated, we will focus on reducing our debt levels in 2004. We expect a net reduction in outstanding debt this year, including the initial borrowings for this acquisition, after utilizing non-core asset sales, a tax refund and free operating cash flow."
SAFE HARBOR STATEMENT
Noble International, Ltd. is a leading supplier of automotive parts, component assemblies and value-added services to the automotive industry. As an automotive supplier, Noble provides design, engineering, manufacturing, complete program management and other services to the automotive market. Noble delivers integrated component solutions, technological leadership and product innovation to original equipment manufacturers (OEMs) and Tier I automotive parts suppliers thereby helping its customers increase their productivity while controlling costs.
Certain statements made by Noble International, Ltd. in this presentation and other periodic oral and written statements, including filings with the Securities and Exchange Commission, are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, as well as statements which address operating performance, events or developments that we believe or expect to occur in the future, including those that discuss strategies, goals, outlook or other non- historical matters, or which relate to future sales or earnings expectations, cost savings, awarded sales, volume growth, earnings or a general belief in our expectations of future operating results, are forward-looking statements. The forward-looking statements are made on the basis of management's assumptions and estimations. As a result, there can be no guarantee or assurance that these assumptions and expectations will in fact occur. The forward-looking statements are subject to risks and uncertainties that may cause actual results to materially differ from those contained in the statements. Some, but not all of the risks, include our ability to obtain future sales; our ability to successfully integrate acquisitions; changes in worldwide economic and political conditions, including adverse effects from terrorism or related hostilities including increased costs, reduced production or other factors; costs related to legal and administrative matters; our ability to realize cost savings expected to offset price concessions; inefficiencies related to production and product launches that are greater than anticipated; changes in technology and technological risks; increased fuel costs; work stoppages and strikes at our facilities and that of our customers; the presence of downturns in customer markets where the Company's goods and services are sold; financial and business downturns of our customers or vendors; and other factors, uncertainties, challenges, and risks detailed in Noble's public filings with the Securities and Exchange Commission. Noble does not intend or undertake any obligation to update any forward looking statements. For more information see www.nobleintl.com .