RT Industries, Inc. and Quality Automotive Company Merger Completed
4 September 1997
RT Industries, Inc. and Quality Automotive Company Merger CompletedORLANDO, Fla., Sept. 4 -- RT Industries, Inc. a Sanford, Florida manufacturer and distributor of automotive brake pads and Quality Automotive Company, Inc. a privately held manufacturer of friction materials and brake pads and a remanufacturer of automotive brake shoes, with over 160 employees based in Tappahannock, Virginia, today announced that they have completed the merger of the two companies originally announced in June. RT Industries will conduct operations under the name U.S. Automotive Manufacturing, Inc., which name shall be licensed by the wholly owned subsidiary of Quality Automotive of the same name (such subsidiary to change its operating name to, and hereafter be known as, U.S. Automotive Friction, Inc.). U.S. Automotive will employ materials manufactured by U.S. Friction with respect to all of its product offerings and will relocate its corporate headquarters to Tappahannock, Virginia. The Sanford facility of U.S. Automotive will continue to manufacture brake pads and shall serve as the regional distribution center for the full line of automotive brake products. Quality Automotive which has conducted operations under that name since 1980 will continue to operate under the Quality Automotive name. Martin Chevalier, the President and CEO of Quality Automotive since 1989 has become the President, Chief Executive Officer and a director of the combined company. John W. Kohut, a director since 1987 and Chairman of the Finance Committee of Quality Automotive, has become Chairman of the Board of Directors of U.S. Automotive. Messrs. Chevalier and Kohut, the prior owners of Quality Automotive, at closing, have become the largest shareholders of U.S. Automotive. David Love will continue to serve U.S. as a director and as chairman of its Audit Committee. Mandel Sherman will also continue as director of U.S. Automotive. For the calendar end December 31, 1996, the combined net revenues of RT and Quality were in excess of $20,000,000. U.S. Automotive believes that the merger will provide a platform for the future growth of the combined companies. U.S. Automotive intends to position itself to compete more formidably in the manufacture and sale of friction materials as well as other "under car" automotive parts through both acquisitions and internal growth. SOURCE RT Industries, Inc.