Autocam Responds to Rumors of Pending Business Combination
15 September 1999
Autocam Responds to Rumors of Pending Business Combination
KENTWOOD, Mich., Sept. 15 -- Kentwood, Michigan-based Autocam
Corporation today responded publicly to rumors that it is
involved in negotiating a business combination. "The Company is continually
evaluating its alternatives in order to remain competitive in a changing
marketplace for the benefit of our investors, customers and employees," said
Mark R. Scott, Director of Investor Relations. Management of the Company
recognizes that the automotive industry is undergoing major strategic shifts
and realignment. Increasing consolidation activity, customer preferences
toward fewer suppliers and the shift toward globalization and systems
suppliers are just a few of the external factors affecting the Company and its
operations. "The Company's management believes in the current strategic
growth plan and is confident that the Company has a bright future under its
current ownership," Scott said. "However, management believes it is incumbent
upon them to explore all options, including the sale of the Company, an
injection of additional equity, a recapitalization or other transaction
benefiting the shareholders and the Company.
In light of recent rumor and unusual market activity we feel it necessary
to indicate that an independent investment banker has been engaged upon the
recommendation of a committee of independent directors to assist in these
evaluations and is actively investigating alternatives available. After an
extensive solicitation process covering many months, there is currently under
discussion a potential transaction that would involve the purchase of all of
the stock of the Company, except for an undetermined number of shares held by
management, primarily the Company's president, John C. Kennedy. "Mr.
Kennedy's continued involvement and substantial future ownership position is
contemplated as necessary both from a capitalization as well as an operating
consideration. The transaction being discussed, if consummated, would be at
$21 per share," Scott said.
Scott emphasized that the transaction is not certain to occur. No
transaction documents have been executed and the other party to the
transaction is not yet bound to the transaction. Prior to giving any finality
and certainty to the discussions, considerable documentation, due diligence
and financing must be completed as well as completing any appropriate work
force information and consultation procedures which may be required under
local laws where the Company operates.
"The current discussions appear to be a possible alternative to the
Company's plan to provide shareholder value," Kennedy indicated. "My
continued full time involvement with the Company will be required and I am
committed to that prospect whether or not this transaction is finalized.
Either way, the Company is well positioned to achieve its marketplace and
shareholder value goals."
Autocam manufactures precision-machined parts used in automotive fuel
systems, anti-lock braking systems, automotive electric motor assemblies,
medical devices, and computer electronics. Autocam's common stock trades on
the Nasdaq National Market under the symbol "ACAM". For more information on
the Company, visit Autocam's Internet website at http://www.autocam.com .