Standard Automotive Corporation Announces Acquisition of Al-Jon, Inc.
19 January 1999
Standard Automotive Corporation Announces Acquisition of Al-Jon, Inc., With Sales of $21 Million and Accretive to Earnings
HILLSBOROUGH TOWNSHIP, N.J.--Jan. 19, 1999--Annualized Revenues Increase by More Than 290% to $130 Million
Standard Automotive Corporation (AMEX: AJX, AJX.PR) today announced that it has agreed to acquire the assets of AL-Jon, Inc. During calendar year ended 1998, Al-Jon achieved total sales of approximately $21 million. The acquisition of Al-Jon is immediately accretive to the earnings of Standard Automotive Corporation.
Headquartered in Ottumwa, Iowa, Al-Jon manufactures car crushing and metal bailing equipment and specialized, heavy-duty tractors used to compact waste in municipal landfills. Al-Jon operates several facilities with a total of 125,000 square feet of manufacturing, warehousing and office/administrative space. The acquisition of Al-Jon, Inc. will represent the third such transaction successfully completed by Standard Automotive Corporation during the current fiscal year, which ends March 31, 1999. Following the close of this acquisition, the Company will have annualized consolidated revenues of approximately $130 million, representing an increase of more than 290% over revenues of $33.3 million that the Company reported during its most recent fiscal year ended March 31, 1998. With the addition of Al-Jon, along with the Company's recently announced construction of a production plant in Mexico, Standard Automotive will have a total of almost 600,000 square feet of manufacturing facilities. Furthermore, Al-Jon will further strengthen the Company's strategic market presence in the western United States, and will establish Standard Automotive as a leading provider of heavy-duty equipment to the multi-billion dollar landfill and waste industries. The Company will also capitalize on significant opportunities to manufacture and cross-market other Standard Automotive products at the Al-Jon facility.
Management is presently reviewing other strategic opportunities to achieve continued internal growth and to complete additional accretive acquisitions.
Steven Merker, Chairman of Standard Automotive commented, "I am extremely excited that we are acquiring Al-Jon, Inc. The addition of Al-Jon immediately establishes Standard Automotive as a manufacturer of prime movers and other equipment used in the municipal waste and landfill industries, representing significant, new markets that will fuel our continued growth. We plan to aggressively enhance the growth of Al-Jon through the development of allied products and the completion of additional acquisitions."
STANDARD AUTOMOTIVE CORPORATION, with production facilities strategically located throughout the U.S. and Mexico, is a leading manufacturer of trailer chassis for transporting maritime and railroad shipping containers, dump truck bodies and a wide variety of truck and specialty dump trailers. The Company services a growing number of industries that are dependent on heavy equipment, including construction, bulk commodity hauling, and municipal waste and landfill operations.
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties, and other factors not under the Company's control which may cause actual results, performance, and achievements of the Company to be materially different from the results, performance or expectations of the Company. These factors may include, but are not limited to those detailed in the Company's periodic filings with the Securities and Exchange Commission.