Automotive Performance Group Completes Private Placement
20 April 1999
Automotive Performance Group Completes Private Placement
GARDEN GROVE, Calif.--April 20, 1999--Automotive Performance Group, Inc. (OTCBB: RACG) has completed, in a private placement, the sale of approximately $8 million of Series A Preferred Shares to a group of accredited investors. The Preferred Shares are convertible into common stock of the corporation. APG will have approximately 10.7 million common shares outstanding with the completion of this transaction."Our company expects to use about two-thirds of the net proceeds for acquisition-related activities, including an initial $2-million deposit associated with our letter of intent to purchase Loctite's automotive aftermarket business, and our option agreement to acquire Advanced Chemistry & Technology (AC Tech), a leading producer of aircraft sealant and packaging materials," said APG Board Chairman and Chief Executive Officer Dean M. Willard. "The remaining funds will be used for working capital and general corporate expenses, as well as for future acquisitions oriented toward activities related to APG's high-performance automotive and aircraft specialty chemical products and services businesses," he added.
Willard noted the company is currently finalizing the financing for its previously disclosed plans to acquire the automotive aftermarket business of Loctite, Inc. The Loctite transaction is scheduled to be completed during the second quarter of 1999 and is expected to add more than $100 million in annual revenues to APG.
KSH Investment Group, Inc. (New York) served as the agent for the private placement.
Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties which may affect Automotive Performance Group, Inc.'s business and prospects and cause actual results to differ materially from these forward-looking statements.
Automotive Performance Group, Inc., is a full-service owner and operator of high-performance automotive businesses, including Royal Purple Motor Oil, which produces synthetic oil and chemical products favored by many racing teams and manufacturers, and Klein Engines and Competition Components, Inc., a leading manufacturer of high-performance engines.