Midas and Magneti Marelli Close Transaction for Strategic Alliance
2 November 1998
Midas and Magneti Marelli Close Transaction for Strategic Alliance and for Midas' Sale of Its European Operations to Magneti MarelliCHICAGO--Nov. 2, 1998--Midas, Inc. , and Magneti Marelli, S.p.A., a member of the Fiat Group, have completed the previously announced transaction to form a strategic alliance to develop the Midas program in the business of fast auto service repair in Europe and South America.
As part of the alliance, reached in a definitive agreement announced on Oct. 1, Midas has sold its interests in Europe to Magneti Marelli and will enter into a long-term license agreement for which Midas has received $100 million and will receive on-going royalties throughout the term of the license agreement.
The 438 automotive service shops in Austria, Belgium, France, Italy, Poland, Spain and Switzerland will continue to operate using the Midas name. The alliance calls for Midas and Magneti Marelli to cooperate on development and expansion of the Midas program worldwide.
Magneti Marelli, based in Milan, Italy, is an international leader in the design and production of high-tech components, systems and modules for the automotive industry.
Midas is one of the world's largest providers of automotive service, including exhaust, brakes, steering and suspension, as well as batteries and maintenance services. There are more than 2,700 Midas locations in 19 countries, including nearly 2,150 in North America.
NOTE: This news release contains certain forward-looking statements that are based on management's beliefs as well as assumptions made by and information currently available to management. Such statements are subject to risks and uncertainties, both known and unknown, that could cause actual results, performance or achievement to vary materially from those expressed or implied in the forward-looking statements. The company may experience significant fluctuations in future results, performance or achievements due to a number of economic competitive, governmental, technological or other factors. Additional information with respect to these and other factors which could materially affect the company and its operations are included in the company's filings with the Securities and Exchange Commission, including the company's 1997 annual report on Form 10-K.