Standard Automotive Corp. Completes Third Acquisition
21 September 1998
Standard Automotive Corp. Completes Third Acquisition
HILLSBOROUGH TOWNSHIP, N.J.--Sept. 21, 1998--CPS Trailer Co. to Add Revenues of $17 Million
STANDARD AUTOMOTIVE CORPORATION (AMEX:AJX,AJX.PR) announced today that it has successfully completed the acquisition of CPS Trailer Co., Inc.
The cost of the acquisition was $8.6 million, consisting of 125,000 shares of Standard Automotive Corporation common stock and $7.7 million in cash, the proceeds of which were drawn down from the $40.0 million credit facility that the Company arranged with PNC Bank, N.A. and PNC Capital Markets.
The acquisition of CPS is initially expected to generate approximately $17 million in annual revenues and will be immediately accretive to earnings. For the eight months ended August 31, 1998 CPS realized total revenue of $11.1 million, and net income of $900,000.
CPS manufactures a wide variety of truck and specialty dump trailers, which are primarily used in the hauling of bulk commodities from the construction, agricultural, and waste hauling industries. Located in Oran, Missouri, CPS recently doubled the size of its manufacturing facilities to 140,000 square feet to accommodate new product expansion.
Steven Merker, Chairman and Chief Executive Officer of Standard Automotive, commented, "The acquisition of CPS further enhances our strategic position, by significantly expanding our base of customers, growing product mix, and geographic diversity, as well as increasing revenue and corporate profits. CPS represents the third in a series of strategic acquisitions since our initial public offering in January of this year. Completion of this acquisition is consistent with our objective of realizing continued corporate growth through internal expansion as well as selective, accretive acquisitions."
STANDARD AUTOMOTIVE CORPORATION designs, manufacturers and markets trailer chassis, customized dump truck bodies, specialized suspension systems for trucks, and related products and parts. The Company's products are sold to equipment leasing companies, steamship lines, railroad and trucking carriers, as well as to the agricultural, construction and waste-hauling industries.
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties as 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.