Mark IV Announces Agreement to Sell its Automotive Filter Business

8 February 1999

Mark IV Announces Agreement to Sell its Automotive Filter Business

    AMHERST, N.Y.--Feb. 8, 1999--Mark IV Industries, Inc. announced today that it has agreed to sell its Purolator automotive filter business for $276 million, to Arvin Industries, Inc.
    The cash purchase price includes the assumption of approximately $6.0 million of debt. The business being sold has annual revenue of $345 million.
    Purolator Products was acquired by Mark IV in 1994 for $285 million. Mark IV will retain ownership of Purolator's specialty filtration operations, which have annual revenue of approximately $150 million, and serve industrial, transportation, petroleum and chemical markets around the world.
    It is expected that the transaction will close on or before February 28, 1999, the end of the company's fiscal year. However, any delay in regulatory agency approval under the Hart-Scott-Rodino Antitrust Act could extend the closing beyond that date.
    Sal H. Alfiero, chairman and chief executive officer of Mark IV, said, "redeployment of the capital we have invested in the automotive filter business will be used to reduce debt in the short-run and significantly strengthen Mark IV's balance sheet. Longer term, this transaction will enable Mark IV to pursue other growth opportunities and enhance shareholder value. Using debt repayment as a measure, on a pro forma basis, the transaction will be slightly dilutive by only two to three cents per share for fiscal 1999. Additionally, when completed, the sale will result in a small after-tax loss charged to discontinued operations.
    "The sale of Purolator automotive filter products will help us focus our efforts on growing our Automotive Engine business, consisting of power transmission and air intake systems, along with our vehicle Platform business, which consists of fluid handling and fuel systems. We remain committed to our OEM and aftermarket businesses and will continue to expand in these vital markets. Additionally, the company plans to broaden its industrial business segment in select geographical and technological areas."
    Arvin Industries, Inc. headquartered in Columbus, Indiana, is a global manufacturer of automotive parts, with annual revenue of approximately $2.5 billion.
    Mark IV Industries, Inc. is a $2.2 billion global manufacturing company headquartered in the Buffalo suburb of Amherst, New York, employing 17,000 people worldwide. The company's core technologies include power transmission, fluid transfer and specialty filtration systems and components for global industrial and automotive markets. For more information on Mark IV, visit the company's web site at http://www.mark-iv.com.