TI Group Automotive Systems Formed; Combines Bundy and Walbro
23 June 1999
TI Group Automotive Systems Formed; Combines Bundy and Walbro
* $2 billion world leader in brake, fuel and powertrain systems
* Allan Welsh appointed Chief Executive of TI Group Automotive Systems
DETROIT, June 22 -- TI Group today announced the formation of
TI Group Automotive Systems upon completion of its acquisition of Walbro
Corporation.
TI Group Automotive Systems will bring together the recently acquired
Walbro fuel systems business with Bundy, TI Group's world leader in
fluid-carrying systems. Allan Welsh, formerly chief executive officer of
Bundy and a director of TI Group's Main Board, has been appointed chief
executive of TI Group Automotive Systems.
The new organization 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 brake line and
powertrain fluid-carrying businesses.
Ken Templeton, currently deputy finance director of TI Group, additionally
will 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 to 90 days. Frank
Bauchiero will continue as CEO of Walbro, based in the Detroit area, during
the transition period 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 percent stake in Marwal, a
joint venture with Magneti Marelli in Europe and South America, a
50-percent-owned joint venture with Mitsuba in Japan and a 48-percent-owned
joint venture in Vitec L.L.C. located in Detroit.
Consolidation in the automotive industry is driving a requirement for
fewer and more specialized suppliers who are able to provide greater systems
content on a global basis. The formation of TI Group Automotive Systems will
capitalize on these industry trends, integrating Bundy's 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."
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 $3.5 billion of which 45 percent was North
America, 27 percent Continental Europe, 20 percent UK and 8 percent Rest of
the World.
In North America, TI Group employs over 16,000 people at more than 120
manufacturing and customer service facilities. U.S. shareholders currently
account for approximately 25 percent of the total issued share capital of TI
Group, 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 http://www.tigroup.com.