Peregrine Incorporated to Be Acquired by an Affiliate Of Jay Alix & Associates
24 April 1998
Peregrine Incorporated to Be Acquired by an Affiliate Of Jay Alix & Associates
New Owner to Begin Fast Restructuring
SOUTHFIELD, Mich., April 23 -- Peregrine Acquisition, Inc.
and Peregrine Holding, Inc. today jointly announced that they have executed a
definitive agreement under which Peregrine Holding, Inc.'s wholly-owned
subsidiary, Peregrine Incorporated, a major supplier of interior and exterior
products to the automotive industry, will be acquired by Peregrine
Acquisition, Inc. Peregrine Acquisition, Inc. is an entity whose principals
include Jay Alix, founder of Jay Alix & Associates, a national turnaround
consulting firm, and managing principal of Questor Partners Fund, L.P., a
turnaround buyout fund. The transaction is expected to close by May 31.
Peregrine Incorporated was founded eighteen months ago through the
purchase of four General Motors Delphi parts plants, and a subsequent
acquisition of MSI Manufacturing Group, Inc. in July 1997. Peregrine Holding,
Inc. will continue to own its well-respected hinge and spare tire carrier
manufacturing operations in Jackson, Michigan and Matamoros, Mexico.
The new owner will begin immediately to implement a turnaround plan to
enhance cash flow and manufacturing efficiency and to improve operations and
profitability. The company's customers have indicated their support for a
turnaround program.
Jay Alix is Chairman of Peregrine Acquisition, Inc. Upon closing the
transaction James J. Bonsall, a principal with Jay Alix & Associates, will
assume the role of CEO of Peregrine Incorporated.
"We will have our turnaround strategy up and running within 90 days," said
Jay Alix. "The continued support of our employees and suppliers also will be
an important contributor to the success of the turnaround process."
FACT SHEET
PEREGRINE INCORPORATED
CORE BUSINESS: Peregrine Incorporated is a privately held company that
designs and manufactures both interior and exterior automotive
components for the world's leading car companies. The company's scope
includes die, tooling and prototype development, as well as service
parts and distribution.
PRODUCTS: Serving both OEMs and the aftermarket, Peregrine products
include seat assemblies, door trim panels, window regulators, door
modules, air bag canisters, stamped metal products, plastic fascia and other
miscellaneous body parts.
HISTORY: The company began operations in January, 1997 with the
purchase of four General Motors Delphi parts plants. In June, 1997, Peregrine
acquired MSI Manufacturing Group Inc., consisting of three manufacturing
facilities and a forming technologies center. In May, 1998, Peregrine
Incorporated will be acquired by Peregrine Acquisition, Inc., whose chairman,
Jay Alix, is also the founder of Jay Alix & Associates, a national turnaround
consulting firm, and managing principal of Questor Partners Fund, L.P., a
turnaround buyout fund.
MANAGEMENT: Upon closing of the acquisition now in progress, Peregrine
Incorporated's new Chairman will be Jay Alix. Its new Chief Executive Officer
will be James J. Bonsall.
FACILITIES: Headquartered in Southfield, Michigan, Peregrine Incorporated
operates Michigan plants in Battle Creek, Flint, Livonia and Warren, as well
as Canadian plants in Windsor and Oshawa, Ontario.
* Battle Creek: Supplies medium-to-large size stampings and assemblies in
mid-and high volume quantities. This facility has 145,000 square feet of
operating space on 100 acres. Products include radiator support assemblies,
cross members and air-bag module components.
* Flint: Supplies window regulators, hinges, door modules and stampings
from a facility of 1.9 million square feet of operating space on 240 acres.
* Livonia: Supplies door trim panels, door trim inserts and injection
molded trim components. This facility has 1.2 million square feet of
operating space on 78 acres.
* Warren: This operation has two facilities with 167,000 square feet
of operation space on 10 acres. These operations produce medium-size
stampings and assemblies in the mid- to high-volume range. Complex assemblies
with as many as 22 components are produced at these facilities.
* Windsor: Supplies seat assemblies and door trim panels, from a facility
of 701,000 square feet on 117 acres.
* Oshawa: Supplies metal stampings, as well as plastic components such as
TPO and RIM fascias. The Oshawa facility has 1.2 million square feet of
operating space on 40 acres.
FORMING
TECHNOLOGIES:
* Warren: The Forming Technologies facility in Warren is a sheetmetal
prototype and engineering center. It has 118,000 square feet of operating
space on 7.5 acres.
SOURCE Peregrine Acquisition, Inc.