J.L. French Announces Definitive Agreement to Acquire Nelson Metal
14 September 1999
J.L. French Announces Definitive Agreement to Acquire Nelson Metal Products CorporationMINNEAPOLIS, Sept. 13 -- J.L. French Automotive Castings, Inc. ("J.L. French"), today announced that it has signed a definitive agreement to acquire all of the outstanding common stock of Nelson Metal Products Corporation ("Nelson"). The transaction, which is subject to regulatory approval, is expected to close during the fourth quarter of 1999. Nelson, which has annual revenues in excess of $200 million, is a full service supplier of medium and large aluminum die castings for the automotive industry. Nelson's customers include Ford and General Motors and it has manufacturing facilities in Grandville, Mich. and Glasgow, Ky. "Nelson is a highly regarded supplier and represents an excellent strategic fit with our existing business," said Charles M. Waldon, president and chief executive officer of J.L. French. "Nelson brings to French new product lines, a new process technology, a new customer and a strong engineering group. Our combined companies will have enhanced capabilities to better serve our customers and create value-based relationships. Our plans are to expand the production capabilities at both of Nelson's manufacturing facilities." James Humphrey, president and chief executive officer of Nelson, said "From Nelson's perspective, this transaction represents an excellent opportunity to align ourselves with another industry leader for continued growth and additional benefits to our customers. We believe the combined company can more effectively capitalize on the growth opportunities in this segment of the automotive industry." J.L. French Automotive Castings, Inc., is a leading global designer and manufacturer of highly engineered aluminum die cast automotive parts including oil pans, engine front covers, engine blocks and transmission cases. The company is based in Sheboygan, Wis., and has its corporate office in Minneapolis, Minn. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. Such forward- looking statements are based on the belief of the management of J.L. French as well as on assumptions made by and information currently available to J.L. French at the time such statements were made. Such forward-looking statements relate to, among other things, (i) the expected closing date of the acquisition, and (ii) the anticipated benefits of the acquisition. Actual results could differ materially from those projected in the forward-looking statements as a result of (i) unexpected delays in obtaining regulatory approvals; (ii) the inability of either J.L. French or Nelson to satisfy the conditions to the consummation of the acquisition; (iii) unforeseen difficulties in integrating the operations of J.L. French and Nelson, or (iv) unanticipated negative reaction to the proposed transaction by customers or suppliers.