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TI Group Completes DM 800 Million Acquisition of Busak+Shamban

11 October 1999

TI Group Completes DM 800 Million Acquisition of Busak+Shamban; Creation of TI Group Specialty Polymer Products; John Langston Appointed Chief Executive of New Division

    NEW YORK--Oct. 8, 1999--UK-based TI Group, the global specialized engineering company, today announced that following the receipt of key regulatory clearances it has completed the acquisition of Busak+Shamban, the global specialty polymer products company, for DM 800 million (approximately $446 million) in cash.
    Following the successful completion, TI Group has formed TI Group Specialty Polymer Products, a new division which brings together the operations and strong brand names of Busak+Shamban with those of Forsheda, TI Group's world leader in specialty elastomer applications. John Langston, a main board director of TI Group, is appointed chief executive of TI Group Specialty Polymer Products with immediate effect.
    Forsheda and Busak+Shamban are highly complementary in terms of materials technologies, geographical presence and core business skills. TI Group Specialty Polymer Products will be well-positioned to take full advantage of the strong synergies between the two businesses and will create a clear global number two position in polymer sealing, serving the industrial, automotive and aerospace markets. On a pro forma basis, the combined 1998 sales of the new grouping would have been about 400 million pounds (approximately $652 million) with around 7,000 people employed at over 50 locations worldwide.
    As previously announced, Langston, as chief executive of TI Group Specialty Polymer Products, will be supported by Holger van den Heuvel, previously chairman and chief executive of Busak+Shamban, who will become chairman of the newly formed division with a particular focus on its strategic development.
    Bill Laule, chief executive of TI Group, commented: "The acquisition of Busak+Shamban makes an excellent strategic fit with Forsheda and the formation of TI Group Specialty Polymer Products, under John Langston's leadership, will enable us to maximize the significant synergies between the two, highly complementary businesses. Customers will see major benefits from the unmatched breadth of our product range, our greater presence globally and our strong focus on specialty polymer applications, all of which leaves us well-positioned to generate double-digit growth."
    TI Group Specialty Polymer Products is one of TI Group's world leading businesses, the others being John Crane (engineered sealing systems), the new TI Group Automotive Systems (fluid storage and delivery systems) and Dowty (aerospace systems).
    TI Group plc, listed on the London Stock Exchange, is one of the world's leading specialized engineering companies and employs over 40,000 people at more than 450 manufacturing and customer service facilities in over 45 countries.
    TI Group'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.