Arvin Completes Purolator Filter Sale

26 February 1999

Arvin Completes Purolator Filter Sale

    COLUMBUS, Ind.--Feb. 26, 1999--Arvin Industries, Inc. , today announced that it has completed the transaction to acquire the Purolator Products automotive filter business from Mark IV Industries, Inc. Purolator(TM) has sales of approximately $345 million. The transaction value of $276 million includes the assumption of $6 million in debt.
    Purolator(TM) is a leading independent manufacturer and distributor of automotive oil, air, and fuel filters in North America for the replacement and original equipment markets. Purolator(TM) is also an automotive legend whose brand name is one of the oldest and best established in the industry. The legend began with the creation of the first automotive filter in 1923. The filter was called "Purolator" by its inventor . . . short for the words "pure oil later." Today, the promise of the Purolator(TM) name continues to be true. The Purolator(TM) brand includes more than 2,000 part numbers for automotive, light truck and heavy-duty applications.
    V. William Hunt, President and Chief Executive Officer said, "We welcome Purolator(TM), their employees, and products into the Arvin family. Purolator(TM), along with Maremont(TM) exhaust, Gabriel(TM) ride control, and StrongArm(TM) gas springs create tremendous synergies among our brand name replacement products.
    "In addition to the brand name synergies we share, the transaction will be accretive to earnings in 1999 and is expected to result in a Return on Invested Capital (ROIC) in excess of Arvin's cost of capital," Hunt explained.
    Certain information and statements included or implied are forward looking and involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These forward-looking statements are identified by their use of terms and phrases such as "expected," "expect," "should," "estimated earnings," "anticipate," and "believe." Information about potential factors identified by the Company, which would affect the actual financial results, are included in the Company's Form 8-K, filed January 3, 1997, with the SEC.
    Arvin Industries, Inc., is a global manufacturer of automotive components with over 50 manufacturing facilities and eight technical centers located in 19 countries. Arvin is a leading manufacturer of automotive exhaust systems, ride control products, and gas charged lift supports. Our replacement products are sold under various trademarks including Arvin, Maremont, Timax, ANSA and ROSI for exhaust systems; Gabriel shock absorbers; and StrongArm gas charged lift supports.
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