Automotive Performance Group, Inc. to Acquire Two Companies
2 November 1998
Automotive Performance Group, Inc. - OTC - to Acquire Willard Associates and Advanced Chemistry & Technology
TEMPE, Ariz.--Nov. 2, 1998--
Dean Willard, APG Chairman, Named to Additional Post of CEO;
Andrew L. Evans to Remain a Director
AUTOMOTIVE PERFORMANCE GROUP, INC. (OTC BB: RACG), a full service owner and operator of high performance automotive businesses and brands, announced today that it has signed a letter of intent to acquire Willard Associates, Inc., and Advanced Chemistry & Technology, Inc., of Garden Grove, California.
In conjunction with the acquisition, Dean M. Willard, who was appointed as Chairman of the Board of APG in September, has been elected to the additional post of Chief Executive Officer. Andrew L. Evans, whose private investment company initially funded APG and developed its business plan, has relinquished the posts of President and Chief Executive Officer, as planned, but will remain a member of the Board of Directors as well as President of Team Scandia, Inc., the company's competition race car division. "We intend to fill the position of President of APG in early 1999 upon the completion of several potential acquisitions," Mr. Willard said.
Mr. Willard is the principal owner of Willard Associates, a consulting company, and a principal shareholder in Advanced Chemistry & Technology, a developer and manufacturer of advanced proprietary sealants and coatings for the aerospace industry.
Mr. Evans, who is also President of Dominion Income Management Corp., the largest shareholder of APG, stated, "It has always been the intention of Dominion to build a solid platform from which APG can expand and to attract the leadership of someone as capable and experienced as Mr. Willard. Dean and I have become closely aligned in our vision for APG. Dean offers APG expansion into the specialty chemicals arena and his vast merger and acquisition experience will be invaluable as we continue to work closely together on an aggressive acquisition strategy for APG. The entire Board is very excited to have Dean take the helm."
Said Mr. Willard: "The decision to combine the operations of Advance Chemistry & Technologies into APG is one that I believe will lead to the creation of a major worldwide performance brands company. Brand extensions into chemicals, I believe, is a logical one and synergistic with the growth strategy of APG of acquiring high performance, high margin products, and to build off its base in the synthetic automotive lubricant business, where it has already established a significant foothold."
During 1989 to 1995, Mr. Willard served as Vice Chairman and Chief Executive Officer of Courtaulds Aerospace, Inc., Glendale, California. Courtaulds was formed in 1989 following the acquisition of Products Research & Chemical Corporation (PRC), a New York Stock Exchange company, of which Mr. Willard was the President and Chief Executive Officer from 1972 to 1989. Courtaulds Aerospace currently employs some 2,000 employees and has revenues of $300 million with operations in 17 countries.
During his tenure at PRC, a chemical products company with 1200 employees serving the worldwide aerospace market, revenues grew to a highly profitable $125 million. It was acquired in 1989 by Courtaulds Plc, London, England, for $325 million, or 32 times earnings and three times revenues. For the two years preceding the acquisition, PRC had been selected by Forbes as one of the best small companies in America.
At PRC, Mr. Willard directed a very successful acquisition program, completing more than a dozen acquisitions in its final ten years of business. He established numerous financial relationships with such Wall Street investment banking firms as Merrill Lynch, Prudential, Dean Witter, and others, raising public funds through primary and secondary offerings.
Automotive Performance Group is a full-service owner and operator of a variety of high performance automotive businesses including Royal Purple Motor Oil, which produces synthetic oil and chemical products favored by many racing teams and manufacturers, and Klein Engines and Competition Components, Inc., a leading manufacturer of high performance engines. In addition, APG owns Team Scandia, which last year became the second team in history and the first in a quarter century to record victories in three major North American racing series in the same year. Team Scandia won the 12 Hours of Sebring (Sports Car road racing), the Mopar Parts Nationals at Englishtown, N.J. (NHRA Top Fuel drag racing), and the Las Vegas 500K (IRL Indy car racing) in 1997. APG owns 50 percent of Scandia Bodine Racing, a competitor on the prestigious NASCAR Winston Cup stock car racing circuit. APG also has marketing and personal services agreements with its contracted drivers Jimmy Kite, Cristen Powell and Brett Bodine.
Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties which may affect Automotive Performance Group, Inc.'s business and prospects and cause actual results to differ materially from these forward-looking statements.