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Bundy Acquires Kenmore Italiana A/C Components Business

22 March 1999

Bundy Acquires Kenmore Italiana A/C Components Business

    WARREN, Mich., March 22 -- The Bundy Group has reached an
agreement to acquire the automotive air conditioning components business of
Kenmore Italiana for $33 million.
    "With the air conditioning market growing rapidly in Europe and Latin
America, this acquisition is an excellent opportunity for Bundy to expand its
product offering," Allan Welsh, Bundy's chief executive officer, said.  "We
will leverage Bundy's global business infrastructure and this newly acquired
technology to offer our customers a portfolio of fluid carrying systems second
to none."
    A part of TI Group and the leading specialist in fluid handling systems
for the automotive and refrigeration industries, the Bundy Group had 1998
sales of $1.3 billion and employs 15,000 people at more than 105 locations in
27 countries.
    Based in Milan, Italy, Kenmore Italiana specializes in accumulators and
receiver/driers and supplies the rapidly growing European automotive air
conditioning market.  With annual sales of $29 million, Kenmore Italiana has
160 employees in Italy, as well as facilities in the U.S., Germany and India.
It was previously owned by Lai Berg Holding A/S.
    The acquisition of Kenmore Italiana further expands Bundy's automotive air
conditioning systems capabilities.  The company took a major stake in the
market in 1998 with the acquisition of S&H Fabricating and Engineering, a
world leader in the design and manufacture of A/C and powertrain
fluid-carrying systems based in Sanford, Florida.
    Bundy also recently opened an automotive air conditioning facility in the
Czech Republic and will shortly be opening a similar facility in Brazil to
serve the Latin American market.
    Mr. Welsh noted that since Bundy's acquisition of S&H Fabricating and
Engineering last year, the company has embarked on a major effort to globalize
its air conditioning systems business and expand its customer base by taking
advantage of major market opportunities in Europe, Latin America and Asia
Pacific.
    The automotive air conditioning market is growing rapidly in Europe, Asia
and Latin America.  Accumulators and receiver/driers are the high value-added
components in these systems which filter out loose particles and ensure that
no refrigerant liquid reaches the compressor.  The worldwide market for
accumulators and receiver/driers is estimated to be worth more than $330
million.
    Gianni Lusetti, operations director of Bundy's operations in Italy, will
oversee the integration of Kenmore Italiana into the Bundy Group.  He will be
supported by Domenico Scotti who has lead the Kenmore business for 21 years
and brings a wealth of industry experience.
    Bundy Group is one of four world leading specialized engineering
businesses of TI Group, headquartered in the UK.  The others include John
Crane, Dowty and Forsheda.  Bundy is a world leader in the manufacture of
specialized small diameter fluid handling systems for the automotive and
refrigeration industries.  Bundy Group, with 1998 sales of $1.3 billion,
employs 15,000 people at over 105 locations in 27 countries.  The Bundy Group
can be found on the Internet at http://www.bundy.com.