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Hilite Industries, Inc. to Purchase Assets of SPX Corporation Division

12 July 1999

Hilite Industries, Inc. to Purchase Assets of SPX Corporation Division

    CLEVELAND, July 12 -_ Hilite Industries, Inc. today announced
it has reached a definitive agreement to purchase the assets of the Acutex
Division of SPX Corporation.  Terms of the agreement were not disclosed, but
it is expected to be completed within 30 days.
    With sales of approximately $45 million, the Whitehall, Michigan-based
Acutex Division manufactures solenoid valves for motor vehicle automatic
transmissions.  Hilite Industries, Inc. designs, manufactures and sells a
diversified line of highly engineered components and assemblies for the
automotive industry including brake proportioning valves, electromagnetic
clutches, machined components such as mounting brackets and pulleys, and
specialty components and assemblies such as stampings, specialty springs and
automated assemblies.
    "This acquisition will add an important component to Hilite's broadening
ability to serve customers in the highly fragmented automotive parts supply
business," said Joseph W. Carreras, principal of Carreras, Kestner & Co.,
L.L.C., a Cleveland-based investment firm established in 1998 to purchase
control positions in middle market companies and corporate spinoffs.  In June,
1999, the firm formed Hilite Holding, L.L.C. to acquire Hilite Industries as
its initial investment.  "Our investment strategy is to identify and acquire
well managed manufacturers of highly engineered products, such as Acutex, who
serve automotive niche markets offering above average growth potential.
Acutex's excellent niche position in solenoid valve products and its
transmission expertise complement Hilite's technology in actuators for braking
systems," Carreras added.
    Hilite's customers presently include all three domestic automotive
companies:  Ford Motor Company, General Motors Corporation and Daimler
Chrysler Corporation as well as other original equipment manufacturers such as
Navistar International Transportation Corporation and non-automotive companies
such as Motorola, Inc.  The Company also sells products to first-tier
suppliers of the automotive industry including Borg-Warner Corporation, Bosch
Braking Systems Corporation, Denso of Los Angeles, Inc. and ITT Automotive of
North America, Inc.
    For further information call Michael T. Kestner at 216-771-6700 or access
Hilite Industries, Inc.'s website at http://www.hilite-ind.com .