Standard Automotive Corp. Announces Termination of Letters of Intent
2 July 1999
Standard Automotive Corp. Announces Termination of Letters of Intent to Purchase All-Metals Processing of Orange County, Inc. and Smith Machine Works, Inc.
SOMERVILLE, N.J.--July 2, 1999--STANDARD AUTOMOTIVE CORPORATION (AMEX: AJX, AJXPR) (the "Company" or "Standard") today announced that its subsidiary, Critical Components Corporation, has terminated letters of intent to purchase All-Metals Processing of Orange County, Inc., an aerospace parts plating and finishing company based in Orange County, California and Smith Machine Works, Inc., an aerospace machining company based in Wichita, Kansas.
Standard purchased Critical Components Corporation on June 17, 1999 and simultaneously caused Critical Components Corporation to close on the purchase of Ranor, Inc., a leading fabricator of large precision assemblies for the aerospace, nuclear, industrial and military markets. Critical Components Corporation had letters of intent to purchase All-Metals and Smith Machine Works, Inc., however, Standard decided it would not be in its long-term interest to acquire All-Metals and Smith Machine. Critical Components Corporation also has a letter of intent to purchase Olympic Tool and Engineering of Shelton, Washington. Standard intends to carry out the purchase of Olympic Tool and Engineering. On June 24, 1999, ING Barings Furman Selz, LLC reiterated its "Strong Buy" recommendation on Standard, maintaining its fiscal 2000 estimate of $2.00 per share. The Company remains comfortable that it will meet analysts earnings per share estimates.
Steven Merker, Chairman of Standard commented, "We are very excited with the acquisition of Ranor, Inc., which is experiencing rapid growth in the aerospace and nuclear industries. We believe Olympic Tool is an excellent fit with Ranor, Inc. in the fabrication and nuclear businesses and with Standard's aggressive push into aerospace outsourcing. However, at the present time All-Metals and Smith Machine did not fit our strategic vision."
STANDARD AUTOMOTIVE CORPORATION, with production facilities strategically located throughout the U.S. and Mexico, is a leading manufacturer of trailer chassis for transporting maritime and railroad shipping containers, dump truck bodies and a wide variety of truck and specialty dump trailers. The trailer/truck body group services a growing number of industries that are dependent on heavy equipment, including construction, bulk commodity hauling, and municipal waste and landfill operations. Standard, through its Critical Components division, also manufactures precision fabricated and machined components for the aerospace, nuclear, and industrial equipment sectors, as well as the military and government markets.
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties, and other factors not under the Company's control which may cause actual results, performance, and achievements of the Company to be materially different from the results, performance or expectations of the Company. These factors may include, but are not limited to those detailed in the Company's periodic filings with the Securities and Exchange Commission.