Hastings Manufacturing & Intraco Announce Global Joint Venture
7 October 1999
Hastings Manufacturing & Intraco Announce Global Joint Venture
The new entity will sell branded vehicle chemicals worldwide
HASTINGS, Mich., Oct. 7 -- Hastings Manufacturing Company
(Amex: HMF) and privately held Intraco Corporation today announced an
agreement to form a joint venture company that will develop, market and sell
Casite(R) branded vehicle chemicals around the globe.
The new entity, Casite Intraco, LLC, will do business as The Casite
Company. The Casite Company will marry the automotive product-development
capabilities and domestic sales network of Hastings Manufacturing with the
international sales-and-marketing expertise of Troy, Mich.-based Intraco, a
distributor of automotive aftermarket products.
Hastings and Intraco will each own 50% of the joint venture company, which
will be based in Hastings, Mich. Each company will contribute three
executives to the new entity's board, and an executive manager will run
day-to-day operations.
"This joint venture represents a significant opportunity to maximize the
Casite brand name, which has a 60-year history as a top-quality brand of
vehicle chemicals," said Mark Johnson, president and co-CEO of Hastings
Manufacturing. "We intend to leverage the individual strengths of Hastings
and Intraco in the new company, which will be focused immediately on
increasing domestic and international distribution, as well as expanding the
product line to more fully serve customers."
Johnson continued: "Our relationship with the Intraco founders spans
nearly four decades. Intraco brings a proven track record of distributing
automotive aftermarket products internationally, including extremely
successful programs selling vehicle additives. We welcome this opportunity to
enhance our partnership with Intraco and its chairman and founder, Nicola
Antakli. He has more than 30 years experience marketing and distributing
automotive products in the global aftermarket and was instrumental in
introducing Hastings Piston Rings to international markets."
The Casite brand of automotive additives was acquired by Hastings
Manufacturing Company in 1947. Casite's current products, Motor Honey(R) and
Tranny Honey(R), are sold nationwide through mass retailers including Kmart
and Meijer; automotive specialty retailers such as Murrays; and automotive
jobbers. In addition to increasing distribution, the new company will expand
the Casite line from six to nearly two dozen products, including fuel,
maintenance and aerosol products. The new product line will debut in the
first quarter of 2000.
"The Casite joint venture represents a logical step in our efforts to
leverage our core competencies in product development, manufacturing and
quality," said Andrew F. Johnson, Hastings president and co-CEO.
"Additionally, having a stand-alone venture for Casite will enable Hastings to
further sharpen its focus on piston rings."
Commenting on the joint venture, Nicola Antakli said: "Intraco is
determined to build brand recognition and extensive distribution channels for
Casite automotive products in the multi-billion dollar global automotive
aftermarket. In addition to our high-quality products, we will support Casite
customers with a focused brand-marketing strategy, combining competitive
pricing and strong promotional efforts with our trademark commitment to
superior customer service."
Hastings Manufacturing expects the new venture will contribute a modest,
positive impact to the Company's financial results in 2000. As part of the
agreement, Hastings will transfer all trademarks for the Casite brand to the
new entity. For the first two years of the agreement, Hastings will retain
exclusive rights to market Casite chemicals in the U.S. and Canada. Intraco
will be responsible for developing Casite chemicals in all other regions of
the world.
Intraco Corporation (http://www.IntracoUSA.com ) is a leading export management
company, developing international sales for major North American manufacturers
of automotive and heavy-duty aftermarket components, automotive glass,
architectural glass, building products, automobiles and trucks.
Hastings Manufacturing (http://www.hastingsmfg.com ) is a leading manufacturer
and marketer of piston rings and specialty tools under the Hastings(R) brand,
and additives for engines, transmissions, cooling systems and fuel systems
under the Casite(R) brand.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: The statements contained in this news release include certain
predictions and projections that may be considered forward-looking statements
under securities laws. These statements involve a number of important risks
and uncertainties that could cause actual results to differ materially,
including but not limited to economic, competitive, governmental and
technological factors affecting the Company's operations, markets, products,
services and prices.