Metalforming Technologies, Inc. Completes First Two Aquisitions
3 August 1998
Metalforming Technologies, Inc., a New Company Formed by TMB Industries, Completes First Two Acquisitions
CHICAGO--Aug. 3, 1998--TMB Industries and Chase Capital Partners announced today that they have formed a new company, Metalforming Technologies, Inc., to acquire and operate metal stamping and fabricating companies serving the automotive and truck markets. The new company also has completed its first two acquisitions."Auto and truck manufacturers are demanding more than ever before from their suppliers, forcing consolidation in many market segments," said Thomas M. Begel, chairman of TMB Industries. "By acquiring leading fabricators of auto and truck components, Metalforming Technologies will create the critical mass needed to achieve economies of scale and synergies in technology, engineering, manufacturing and marketing."
Richard McClain, a veteran executive in the auto/truck systems and components industries, has been named president and chief executive officer of Metalforming Technologies. "We are fortunate to have an executive of his experience and capabilities leading this new initiative," Begel said.
In its initial transaction, Metalforming Technologies purchased the assets of Northern Tube, Inc., a unit of AP Automotive Systems, Inc., based in Pinconning, Michigan. Northern Tube, with estimated 1998 revenues of $50 million, manufactures and markets large diameter tubular components, primarily exhaust tubing for medium and heavy duty trucks and tubular frame rails and charge air assemblies for sport utility vehicles and light trucks.
Metalforming Technologies also purchased the assets of Johnson Stamping & Fine Blanking Company, based in Plymouth, Michigan. With estimated 1998 revenues of $20 million, the company manufactures and markets precision metal stamped components, primarily transmission and safety restraint parts.
"The acquisition of Northern Tube and Johnson Stamping form a very solid base on which to build our consolidation and growth strategy in the automotive and truck markets," McClain said. "We expect to complete additional acquisitions in the near future, which will further expand our resources and capabilities."
TMB Industries, headquartered in Chicago, IL, has three operating groups serving the automotive and truck industries: Metalforming Technologies, Inc., a manufacturer of stamped and fabricated metal components for the automotive and truck industries; Automotive Systems International, Inc., a metal component manufacturer for automotive exhaust systems and safety-related systems; and Global Metal Technologies, Inc., a manufacturer of aluminum die castings primarily for the automotive market.
Chase Capital Partners is a global private equity organization with approximately $6.0 billion under management. Chase Capital Partners is an affiliate of The Chase Manhattan Corporation, the largest bank holding company in the United States. Since its inception in 1984, Chase Capital Partners has closed more than 600 individual transactions in North America, Europe, Asia and Latin America.
For further information on the Company, please contact Andrew Weller of TMB Industries, 980 N. Michigan Avenue, Suite 1000, Chicago, IL 60611, (312) 280-2565 or Mathew Lori of Chase Capital Partners, 380 Madison Avenue, 12th Floor, New York, NY 10017, (212) 622-3643.