Autocam Announces Plans to Acquire European Manufacturer
25 June 1998
Autocam Announces Plans to Acquire European Manufacturer
KENTWOOD, Mich., June 25 -- Kentwood, Michigan-based Autocam
Corporation today announced that it is seeking to acquire a
European facility manufacturing products similar to those currently
manufactured by the Company. "The company we are evaluating is a significant
player in the European market," said John C. Kennedy, Autocam's President and
Chief Executive Officer. "This acquisition is another step in our mission to
become a dominant global supplier of precision-machined components to the
automotive industry. The company to be acquired supplies high-precision
components to a customer base consistent with ours and has a highly skilled
work force," he added.
The Company has identified available facilities that would add annual
sales of approximately $80 million at margins consistent with those realized
by the Company on comparable products. Mr. Kennedy reported that although no
binding agreements have been reached, Company personnel are currently engaged
in due diligence review of the identified facilities based on a signed letter
of intent indicating a purchase price of $68-70 million, including the
assumption of debt. The Company indicated a targeted closing date of
October 1, 1998. Mr. Kennedy also indicated that he expects the acquisition
currently under consideration to be accretive to earnings immediately upon
closing of the transaction.
The Company also announced that in order to avoid the dilutive effect of
the exercise of employee options for its common stock currently outstanding,
it will purchase its own common stock in amounts equal to the number of shares
issued upon the exercise of options.
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.
This release may contain forward-looking statements relating to future
financial and other results. Forward-looking statements include statements
concerning plans, objectives, goals, strategies, future events or performance
and underlying assumptions and other statements that are other than statements
of historical facts. Such forward-looking statements may be identified by the
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and any other cautionary statements that may accompany the forward-looking
statements expressly qualify all such statements. Forward-looking statements
involve risk and uncertainties that could cause actual results or outcomes to
differ materially form those expressed in the forward-looking statements.