Standard Automotive Closes on Credit Facility With PNC Bank, N.A.
22 July 1998
Standard Automotive Corporation Announces Closing on $40 Million Credit Facility With PNC Bank, N.A.
HILLSBOROUGH TOWNSHIP, N.J.--July 22, 1998--Completes Acquisition of R&S Truck Body Company With
$20 Million in Annual Revenues
STANDARD AUTOMOTIVE CORPORATION (AMEX: AJX, AJX.PR) announced today the closing of a $40 million credit facility with PNC Bank, N.A. and completed the acquisition of R&S TRUCK BODY COMPANY INC.("R&S").
The acquisition of R&S is expected to generate in excess of $20 million in annual revenues and will be accretive to earnings.
R&S designs, manufactures and sells customized dump truck bodies and trailers, specialized truck suspension systems and related products and parts. R&S also acts as a distributor for truck equipment manufactured by other companies, including cranes, tarpaulins, spreaders, plows and specialized service bodies. R&S recently doubled its manufacturing facilities with the completion of a new 145,000 square foot plant.
STANDARD and CPS TRAILER CO. INC. signed a 60-day extension for the completion of STANDARD's acquisition of CPS in order to allow CPS to settle a contingent liability which arose after execution of the Purchase Agreement. CPS, with 1997 revenues of $12.8 million, primarily manufactures bottom dump truck trailers for hauling bulk commodities for the construction industry, agricultural industry and waste-hauling applications.
Steven Merker, chairman and CEO of STANDARD AUTOMOTIVE CORPORATION, commented, "We are very pleased to have established the relationship with PNC Bank and have R&S join our growing family of companies. R&S represents the second acquisition since our initial public offering in January of this year. In addition to increased revenues and earnings, R&S expands our customer base and diversifies our product mix. We look forward to continued growth through additional strategic acquisitions."
STANDARD AUTOMOTIVE CORPORATION, through its wholly owned subsidiaries AJAX MANUFACTURING COMPANY INC. and R&S TRUCK BODY COMPANY INC. is a specialty transportation manufacturer.
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties and other factors not under the Company's control which may cause actual results, performance achievements of the company to be materially different from the results, performance or expectations of the Company. These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission.