Hayes Lemmerz International Signs Definitive Agreement
20 November 1998
Hayes Lemmerz International Signs Definitive Agreement to Acquire CMI International
Acquisition to Position Hayes Lemmerz as a Leading Corner Module Integrator
ROMULUS, Mich., Nov. 20 -- Hayes Lemmerz International, Inc.
, the world's leading supplier of wheels and brake components to
the transportation industry, announced today that it will acquire CMI
International, Inc., a world-class, full-service supplier of wheel-end,
suspension, structural and powertrain automotive components.
Hayes will pay an aggregate purchase price of $605 million, including
$437 million in cash and the assumption of approximately $168 million of
existing debt. The transaction will be financed with senior credit facilities
and is expected to be neutral relative to Hayes' fiscal year 1999 earnings and
accretive to earnings beginning in fiscal 2000. The transaction is expected
to close in early 1999 following receipt of standard governmental and
regulatory approvals. Hayes intends to nominate Mr. Ray H. Witt, the Chairman
of CMI, to serve as a board member of Hayes Lemmerz International after the
completion of the transaction.
The synergistic combination joins two world-class original equipment
suppliers with highly complementary products, leading market positions, strong
management teams, and excellent design, engineering, production, and testing
technologies. The acquisition also provides Hayes Lemmerz with the critical
mass necessary to compete in the global market and gain the coveted corner
module supplier status that can accelerate sales growth and margin improvement
opportunities.
The combined company is expected to have pro forma sales of over
$2.6 billion with 36 plants and eleven joint ventures. There will be over
15,000 employees worldwide.
"CMI is a world-class supplier of brake, suspension, structural and other
lightweight automotive components and is a tremendous fit with Hayes Lemmerz,"
said Ron Cucuz, Chairman and Chief Executive Officer of Hayes Lemmerz.
Together with CMI, the company is well positioned as a top corner module
supplier and a leader in the growing lightweight aluminum and polymer
components markets. We believe that this acquisition will strengthen our
strategic position globally, enhancing shareholder value and lead to enhanced
growth and margin opportunities."
"We are pleased to be joining the leading manufacturer of world-class
wheels and can see the synergies of Hayes' brake products with our corner
suspension module components," said Ray Witt, Chairman of CMI. "Our
complementary strengths will ensure that we continue to be market leaders in
our respective industries while providing a more complete package to our
customers."
CMI, based in Southfield, Michigan, is a premier independent full-service
supplier of aluminum, iron, and advanced polymer components. CMI, together
with its ownership in A-CMI, a joint venture with Alcoa, has 4,000 employees
and 13 facilities in three countries. CMI is a world leader in casting and
machining technology and the design, engineering, and production of corner
components. CMI's fiscal 1998 sales were $561 million.
Hayes Lemmerz International, Inc. , with annual pro forma sales
of over $2.0 billion, is the world's largest wheel manufacturer and is a
leader in the design, engineering, and manufacture of steel and aluminum
wheels and brake drums and rotors for the automotive and commercial highway
markets in North and South America, Europe, and Asia. In 1993, its first year
as a public company, Hayes had revenues of $428 million. Since 1993, Hayes
Lemmerz has successfully grown the business by introducing new products,
growing its content per vehicle with virtually all of the world's car
producers, and completing numerous strategic global acquisitions, including
Motor Wheel Corporation in July 1996, and Lemmerz Holding GmbH in July 1997,
and several global acquisitions in developing markets in 1998. Hayes Lemmerz
International has more than 11,000 employees and 27 manufacturing facilities
in 12 countries worldwide.
For more information about Hayes Lemmerz International, please be sure to
visit the web site at http://www.hayes-lemmerz.com.
CMI International, Inc.
Fact Sheet
World Headquarters: Southfield, Michigan
Chief Executive: Ray Witt, Chairman
Richard Nawrocki, President and CEO
No. of Employees: 4,000
1998 Revenues: $561 million
Major Customers: (in alphabetical order)
AUTOMOTIVE: Daimler Chrysler
Cummins
Dana
Delphi
Ford
GM
Honda
Mercedes
Mitsubishi
Nissan
Toyota
Visteon
Volvo
Manufacturing Facilities: Cadillac, Michigan
Montague, Michigan
Petersburg, Michigan
Southfield, Michigan
Bristol, Indiana
Wabash, Indiana
Nuevo Laredo, Mexico
Joint Ventures: Fruitport, Michigan
Hawesville, Kentucky
Miamisburg, Ohio
Lista, Norway
Support Operations: Ferndale, Michigan
AuGres, Michigan
Montague, Michigan
White Pigeon, Michigan
Hayes Lemmerz International, Inc.
Fact Sheet
World Headquarters: Romulus, Michigan
Chief Executive: Ron Cucuz, Chairman and CEO
No. of Employees: 11,000
Pro forma 1998 Revenues: $2.0 billion (estimated)
Major Customers: (in alphabetical order)
AUTOMOTIVE: Alfa Romeo
BMW
Daimler Chrysler
Fiat
Ford
General Motors
GM-Opel
Honda
Isuzu
Mitsubishi
Nissan
Porsche
PSA Group
Renault
Rover
Suzuki
Toyota
Volkswagen
Volvo
COMMERCIAL HIGHWAY:
Daf/Leyland
Daimler Chrysler
Dana/Mack
Freightliner
Great Dane
Heavy Duty America
Inveco
MAN
PACCAR
Renault
Stoughton Trailers
Strick
Trailmobile
Volvo/GM
Western Star
Locations:
North America: LaMirada, California
Gainesville, Georgia
Huntington, Indiana
Berea, Kentucky
Bowling Green, Kentucky
Somerset, Kentucky
Mexico City, Mexico
Monterrey, Mexico
Homer, Michigan
Howell, Michigan
Sedalia, Missouri
Akron, Ohio
Europe: Brussels, Belgium
Antwerp, Belgium
Ostrava, Czech Republic
Konigswinter, Germany
Campiglione Fenile, Italy
Dello, Italy
Tegelen, The Netherlands
Manisa, Turkey
Barcelona, Spain
Manresa, Spain
Rest of the World: Guarulhos, Brazil
Pune, India
Johannesburg, South Africa
Yokohama, Japan
Joint Ventures:
Hayes Wheels de Mexico S.A. de C.V. (Tlalnepantla, Mexico)
Hayes Wheels de Venezuela, C.A. (Valencia, Venezuela)
Hayes Wheels do Brasil (Santo Andre, Brazil)
Reynolds-Lemmerz Industries (Ontario, Canada)
Siam Lemmerz Co. Ltd. (Bangkok, Thailand)
Continental Lemmerz Componentes para Automoveis Lda (Palmela, Portugal)
JANTAS Jant Sanayi ve Ticaret, S.A. (Izmir, Turkey)
Affiliates:
ATP (Bangkok, Thailand)
Columbiana de Frenos (Bogota, Columbia)