TI Group Acquires 51% Stake in Marwal for $73M

13 August 1999

TI Group Acquires 51% Stake in Marwal for $73M and has Reached Agreement With Magneti Marelli On Future Collaboration

    NEW YORK --Aug. 13, 1999--UK-based TI Group plc, the global specialized engineering company, today announced that it has agreed to acquire the outstanding 51% equity in Walbro's Marwal joint ventures from Magneti Marelli, subject to the normal regulatory approvals.
    TI Group, following the completion of its acquisition of Walbro Corporation, a leader in fuel storage and delivery systems, already owned 49% of Marwal. The purchase consideration of $73m brings an additional $190m of consolidated sales. It is expected that the all cash acquisition will be earnings enhancing in the first full year of ownership.
    Marwal, headquartered in Chalons-en-Champagne, France, manufactures fuel pumps and modules for automotive fuel systems. It has operations in three countries and over 1,000 employees. Marwal will be integrated into TI Group Automotive Systems, formed following the recent acquisition of Walbro Corporation. TI Group Automotive Systems, which includes Bundy and Walbro, holds a world-leading position in the supply of complete automotive fuel storage and delivery systems, complementing its global brake and powertrain businesses.
    TI Group is also pleased to announce that it is working with Magneti Marelli for closer collaboration on future projects which both parties believe should result in strong growth in sales to their customers, including Fiat Group, Magneti Marelli's controlling shareholder.

Bill Laule, Chief Executive of TI Group, commented:
    "This acquisition is extremely positive for our newly formed TI Group Automotive Systems and will accelerate its growth. With 100% control of Marwal, we have completed our Walbro product range, gained global control of proprietary technology and are now in a position to supply complete fuel storage and delivery systems.
    "In addition, we are working with Magneti Marelli for closer collaboration on future projects, which should lead to a significant increase in business with our customers."

NOTES TO EDITORS

--	TI Group Automotive Systems is one of TI Group's four world leading businesses, the others being John Crane (engineered sealing systems), Forsheda (engineered elastomer seals) and Dowty (aerospace systems).
--	TI Group, listed on the London Stock Exchange, is one of the world's leading specialized engineering companies and employs around 40,000 people at more than 450 manufacturing and customer service facilities in over 45 countries.
--	TI'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.