TI Group Automotive Systems Formed
22 June 1999
TI Group Automotive Systems Formed
DETROIT--June 22, 1999--| - | A (pound)1.25 billion ($2 billion) world leader in brake, fuel and powertrain systems |
| - | Allan Welsh appointed Chief Executive of TI Group Automotive Systems |
Following the successful closing of its acquisition of Walbro Corporation, TI Group today announces the formation of TI Group Automotive Systems. The new grouping will bring together the recently acquired Walbro fuel systems business with Bundy, TI Group's world leader in fluid-carrying systems. TI Group also announces that Allan Welsh, a main Board director, is appointed Chief Executive of TI Group Automotive Systems with immediate effect.
TI Group Automotive Systems will combine Walbro's automotive fuel storage and delivery technology with Bundy's fuel lines and quick connectors to create a unique supplier of complete fuel storage and delivery systems on a global basis. The new fuel business will operate alongside Bundy's world leading brake line and powertrain fluid - carrying businesses.
Effective immediately, Ken Templeton, currently Deputy Finance Director of TI Group, will additionally become Chief Financial Officer of Walbro for a transition period in order to integrate Walbro's reporting systems into TI Group's systems and financial controls.
An integration team, chaired by TI Group Chief Executive Bill Laule, has been established to manage the transition over the next 60-90 days. Frank Bauchiero will continue as CEO of Walbro during the transition period, based in Detroit, and will report to Mr. Welsh. Following the successful completion of the integration of the Bundy and Walbro businesses, Mr. Bauchiero will move into a business development role working directly with Mr. Laule.
Following completion of the acquisition, TI Group Automotive Systems now has stakes in a series of important joint ventures engaged in the same business as Walbro. These interests include a 49% stake in Marwal, a joint venture with Magneti Marelli in Europe and South America, a 50% owned joint venture with Mitsuba in Japan and a 48% owned joint venture in Vitec L.L.C. located in Detroit.
Consolidation in the automotive industry is driving a requirement for fewer, specialized suppliers who are able to provide a greater systems content on a global basis. The formation of TI Group Automotive Systems will capitalize on these industry trends, integrating Bundy and Walbro's approach to global automotive customers and accelerating the growth of the businesses.
Bill Laule, Chief Executive of TI Group, commented:
"Following the successful acquisition of Walbro Corporation, I am very pleased to announce the formation of TI Group Automotive Systems, which will be headed up by Allan Welsh. This group will have important positions in the key fluid-handling automotive markets of fuel, brake and powertrain systems. In the coming weeks we will be integrating the Bundy and Walbro businesses to take full advantage of the valuable synergies we have identified. Recognizing their strong brand awareness, we will continue to market under both the Bundy and Walbro brand names. I am confident that the integration of Walbro and Bundy and the formation of TI Group Automotive Systems will accelerate our growth and contribute to improved shareholder value for TI Group."
NOTES TO EDITORS:
TI Group
TI Group plc, listed on the London Stock Exchange, is one of the world's leading specialized 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 Group's strategy is to be an international engineering group concentrating on specialized engineering businesses operating in selected niches on a global basis. Key businesses must be able to command positions of sustainable technological and market share leadership. They will have a high knowledge and service content and be able to anticipate and meet customers' needs.
TI Group Automotive Systems, including the Bundy (fluid-carrying systems) and Walbro (fuel storage and delivery systems) brand names, is one of TI's current four world leader businesses. The others are John Crane (engineered sealing systems), Forsheda (engineered elastomer seals) and Dowty (aerospace systems). Group turnover in 1998 was (pound)2.2 billion ($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 16,000 people at more than 120 manufacturing and customer service facilities. US shareholders currently account for approximately 25% of the total issued share capital of TI, and its ADR program 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.