Mark IV Completes Acquisition of Lombardini

5 April 1999

Mark IV Completes Acquisition of Lombardini

    AMHERST, N.Y.--April 5, 1999--Mark IV Industries, Inc. announced today that it has completed the acquisition of Lombardini FIM S.p.A., an, Italian-based manufacturer of small diesel engines, for $148 million, consisting of $42 million cash and the assumption of $106 million of existing debt. The transaction closed on April 2, 1999.
    Lombardini, headquartered in Reggio Emilia, Italy, is Europe's leading producer of small diesel engines of up to 50kw (65 horsepower). The company, which had sales of $201 million in calendar 1998, employs 1,250 people throughout its manufacturing facilities in Italy, France, and Spain, and sales and distribution offices in Europe and North America. It has been in business for more than 60 years.
    Lombardini is a leading competitor in various industrial markets, supplying engines to agricultural, marine, automotive, electrical generation and home and lawn care markets primarily in Europe. In addition, it also exports its products to North America, Africa, Latin America and Asia.
    While Mark IV intends to continue and expand the industrial portion of Lombardini's business, the company also expects to leverage its technology in a new segment of the automotive market.
    Commenting on the acquisition, Sal H. Alfiero, Mark IV's chairman and chief executive officer, said, "The addition of Lombardini represents the cornerstone of Mark IV's entree into the "City Car/City Van" segment of the European vehicle market. In a growing number of cities, laws and regulations are being changed to restrict city traffic, in response to vehicle congestion and other problems related to traffic, parking, emissions, noise and other environmental issues. City Cars/City Vans -- specially designed, ultra compact, economical and environmentally friendly vehicles -- are emerging as a rapidly growing segment in a mature automotive market. In the near term, it is estimated that City Cars/City Vans could account for 5-15 percent of Europe's annual vehicle production.
    "Lombardini will form the basis of a new Mark IV business unit to develop and market our "Power Pac" line of products -- modules consisting of a diesel engine integrated with a continuous variable transmission (CVT) currently under development by the company -- for use in City Cars. Mark IV's Power Pac products will reduce emissions, fuel consumption, vibration, noise and weight, and will be available in a variety of sizes in order to satisfy various vehicular requirements."
    Mark IV Industries, Inc. is a $2.2 billion global manufacturing company headquartered in the Buffalo suburb of Amherst, New York, employing 16,000 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.