Lund International Holdings to Acquire Smittybilt, Inc. for $18 Million in Cash
8 January 1999
Lund International Holdings to Acquire Smittybilt, Inc. for $18 Million in Cash
Combination Reinforces Lund International's Leading Position in Highly
Fragmented Truck Accessories Market
ANOKA, Minn., Jan. 7 -- Lund International Holdings, Inc.
, announced today that it has entered into a definitive purchase
agreement to acquire 100% of the capital stock of Smittybilt, Inc. for
$18 million in cash. Smittybilt, located in Corona, Calif., is a leading
manufacturer of tubular accessory products for the light truck market. The
transaction, subject to regulatory approvals, is expected to be completed in
January 1999.
"The acquisition of Smittybilt is another step in our strategy to support
Lund's leadership position in the highly fragmented light truck accessories
market. The addition of Smittybilt significantly broadens our product line for
the light truck market with some of the most popular appearance products in
our industry -- tubular steps, brush guards, bumpers and nerf bars.
Smittybilt, along with our December 1998 acquisition of Auto Ventshade for
$66 million, clearly establishes Lund International as the market leader for
light truck appearance accessories," stated Dennis W. Vollmershausen,
President and CEO of Lund International Holdings, Inc.
Tom Smith, President and CEO of Smittybilt, will stay with the company to
assist during the ownership transition.
As part of the Smittybilt transaction, Harvest Partners, a leading New
York private equity investment firm, BancBoston Capital, Liberty Mutual
Insurance Company and affiliates of Massachusetts Mutual Life Insurance
Company, will invest $5 million in additional equity in Lund through a private
placement. Lund also expanded its existing senior bank credit facility, led by
Heller Financial, Inc., to provide additional financing of $9.5 million.
Affiliates of Massachusetts Mutual Life Insurance Company and National City
Venture Corporation will provide $5 million in the form of subordinated debt
and warrants.
Based in Anoka, Minn., Lund International Holdings is a leading designer,
manufacturer and marketer of a broad line of appearance accessories for new
and used light trucks. It is also a leading manufacturer of aftermarket and
original equipment accessories for the heavy truck market.
Statements in this press release relating to ongoing company operations,
the effects of the acquisition, trends and market analyses, among others, are
forward-looking statements under the Private Securities Litigation Reform Act
of 1995. These statements involve risks and uncertainties which could cause
results to differ materially from those anticipated. Among the factors that
could cause anticipated results of the acquisition to differ materially are
the following: inability to obtain expected efficiencies, or to obtain them
in a timely manner; inability to effectively manage a larger enterprise, to
integrate the companies, or to control costs associated with such integration.
In addition, both Lund's and Smittybilt's business and operations (and
anticipated results) include the following risk factors: consumer preference
changes, risks of expansion into new distribution channels, delays in
designing, developing, testing or shipping new products, increased
competition, general economic developments and trends, developments and trends
in the light truck and automotive accessory market, and increased costs. This
is not an exhaustive list and the Company may supplement this list in future
filings or releases or in connection with the making of forward-looking
statements.