Keystone Automotive Industries' Shareholders Approve Merger

26 June 1998

Keystone Automotive Industries' Shareholders Approve Merger With Republic Automotive Parts

    POMONA, Calif.--June 26, 1998--Keystone Automotive Industries Inc. Friday announced that its shareholders and the shareholders of Republic Automotive Parts Inc. have approved Keystone's proposed acquisition of Republic.
    The acquisition will become effective on June 27, 1998, and shares of common stock of Republic will cease trading on the Nasdaq National Market effective as of the close of business on June 26, 1998.
    Keystone said that of the shares present in person and by proxy (approximately 70 percent of the total shares issued and outstanding) substantially of all the shares were voted in favor of the acquisition.
    In a joint statement, Charles Hogarty, chief executive officer of Keystone, and Keith Thompson, chief executive officer of Republic, said, "We are very pleased to have completed this merger which we view as a major step forward in our plans to expand our distribution throughout the nation.
    "We are confident that the combined strengths of both organizations will enhance shareholder value and result in a company with greater market penetration, a deeper management team and improved purchasing power."
    Keystone is the largest distributor in the nation of aftermarket automotive collision repair parts. As a result of this acquisition, Keystone will have 103 service centers. Prior to the acquisition, Keystone had 81 service centers in 39 states.
    In addition to distributing aftermarket collision repair parts, Republic distributes a complete line of replacement parts primarily relating to the mechanical systems contained in substantially all mass-produced makes and models of automobiles and most mechanical replacement parts for mass-produced trucks and vans. These mechanical replacement parts are distributed through Republic's automotive distribution centers and jobber stores.
    Keystone Automotive Industries distributes its products in the United States primarily to collision repair shops, and its product lines consist of automotive body parts, bumpers, autoglass and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle. These products comprise more than 19,000 stock keeping units that are sold to more than 24,000 repair shops throughout the nation.