Commercial Vehicle Group Announces Acquisition of Cabarrus Plastics
NEW ALBANY, Ohio, Aug. 8, 2005 -- Commercial Vehicle Group, Inc. ("CVG") , today announced that it acquired all of the outstanding common stock of Cabarrus Plastics, Inc. ("CPI").
CPI, which had 2004 revenues of approximately $13 million, is located in Concord, North Carolina and is a manufacturer of custom injection molded products primarily for the recreational vehicle market. The aggregate purchase price was $12.1 million and was financed with cash on hand.
"This acquisition represents a continued investment in processing technology for custom injection molded products," said Mervin Dunn, CVG's president and chief executive officer. "With its high quality and existing capacity, CPI is an important element in our strategy to expand our injection molding capabilities into our existing customer base. Our customers have recognized our intent to grow the hard plastics portion of our business and have awarded new business that will be produced at CPI next year."
The acquisition of CPI will be neutral to CVG's earnings per share for the remainder of 2005. CPI expects revenues to be in the range of $16 million for the full year 2005 and approximately $6 million for the remainder of the year. In addition, operating income and depreciation are expected to be approximately $0.4 million and $0.3 million, respectively, for the remainder of the year.
About Commercial Vehicle Group, Inc.:
Commercial Vehicle Group is a leading supplier of fully integrated system solutions for the global commercial vehicle market, including the heavy-duty (Class 8) truck market, the construction and agriculture market and the specialty and military transportation markets. The company's products include suspension seat systems, interior trim systems, such as instrument and door panels, headliners, cabinetry and floor systems, cab structures and components, mirrors, wiper systems, electronic wiring harness assemblies and controls and switches specifically designed for applications in commercial vehicle cabs. CVG is headquartered in New Albany, OH with operations throughout North America, Europe and Asia. Information about CVG and its products is available on the internet at http://www.cvgrp.com/ .
Cautionary Concerning Forward-Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. These statements are based on certain assumptions that the company has made in light of its experience in the industry as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to: (i) CVG's ability to develop or successfully introduce new products; (ii) risks associated with conducting business in foreign countries and currencies; (iii) general economic or business conditions affecting the markets which CVG serves; (iv) increased competition in the heavy-duty truck market; (v) CVG's failure to complete or successfully integrate additional strategic acquisitions; and (vi) various other risks as outlined in CVG's SEC filings. There can be no assurance that statements made in this press release relating to future events will be achieved. CVG undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to CVG or persons acting on behalf of CVG are expressly qualified in their entirety by such cautionary statements.