Autocam Completes Acquisition of Brazilian Manufacturer
30 January 1998
Autocam Completes Acquisition of Brazilian ManufacturerKENTWOOD, Mich., Jan. 30 -- Kentwood, Michigan-based Autocam Corporation today announced that it completed the previously- announced purchase of a controlling interest in the business of Qualipart Industria E Comercio Ltda., a Brazilian manufacturer of precision-machined metal components with operations in Campinas and Pinhal, Brazil, for $10.2 million. Annual sales of Qualipart, consisting primarily of gasoline and diesel fuel injector components to leading global automotive and heavy construction original equipment manufacturers and their tier-one suppliers, approximate $15 million. The investment was financed through bank borrowings and notes issued to the seller. "We are very excited about this investment," Autocam President John C. Kennedy said. "Qualipart has a strong base of business and manufacturing capabilities which will allow us to expand and strengthen relationships with three key customers who have asked us to produce fuel systems components in the Brazilian market." Kennedy added that he expects the acquisition to be slightly accretive to Autocam's earnings in fiscal 1998, and anticipates earnings improvement as the Company receives additional business it believes is available. This release contains forward-looking statements relating to future financial results. Actual results may differ materially as a result of factors over which the Company has no control. These risk factors and additional information are included in the Company's reports on Form 10-K on file with the Securities and Exchange Commission. Autocam manufactures precision-machined parts used in automotive fuel systems, anti-lock braking systems, automotive electric motor assemblies, medical devices, and computer electronics. Autocam's common stock trades on the Nasdaq National Market under the symbol "ACAM." For more information on the Company, visit our Internet website at http://www.autocam.com. SOURCE Autocam Corporation