TI Group Announces Completion of $570 Walbro Acquisition

18 June 1999

TI Group Announces Completion of $570 Walbro Acquisition

    LONDON--June 17, 1999--TI Group plc, the UK-listed international specialised engineering company, today announced that all conditions relating to the $570 million purchase of Walbro Corporation have now been met and the recommended tender offer for Walbro's common stock has been successfully completed. TI Automotive Systems Inc., TI Group's indirect wholly owned subsidiary, has merged into Walbro in order to complete this transaction. Shares of Walbro stock will no longer trade on NASDAQ.
    The all cash tender offer, which was announced on 28 April 1999, represented $20 for each of the 8.7 million shares in issue, and up to 0.85 million shares to be issued on the exercise of options. As part of the acquisition, TI Group will also assume Walbro's debt, which stood at $388 million at 31 December 1998, giving a total value to the acquisition of approximately $570 million.
    Following completion of the acquisition, TI Group will combine its existing fuel businesses with Walbro to create a world leading position in the supply of complete automotive fuel storage and delivery systems. This enlarged business will sit alongside Bundy's global brake and powertrain businesses and together form the newly created TI Group Automotive Systems. The combined revenues for this new group in 1998 would have been $2 billion.

Bill Laule, Chief Executive of TI Group, commented:
    "We are very pleased to announce the completion of this important acquisition. We are now uniquely positioned to meet the requirements of our global automotive OEM customers for complete fuel storage and delivery systems. I am confident that the combination of these two businesses within TI Group Automotive Systems will accelerate the growth of this important part of the Group and contribute to improved shareholder value."

NOTES TO EDITORS

TI Group

    TI Group plc, listed on the London Stock Exchange, is one of the world's leading specialised engineering companies. Headquartered in the UK, the Group operates on a global basis and following the completion of the Walbro acquisition employs over 40,000 people at more than 400 manufacturing and customer service facilities in over 45 countries.
    TI's current four world leader businesses are John Crane (engineered sealing systems), Forsheda (engineered elastomer seals), Bundy (fluid carrying systems) and Dowty (aerospace systems). Group turnover in 1998 was (pound)2.2 billion (US$3.5 billion) of which 45% was North America, 27% Continental Europe, 20% UK and 8% Rest of the World.
    In North America, TI employs over 15,000 people at more that 120 manufacturing and customer service facilities. US shareholders currently account for approximately 25% of the total issued share capital of TI, and its ADR programme trades on the OTC market as TIGUY.
    A detailed description of TI Group and its businesses can be found on the company's website at www.tigroup.com.