Universal Automotive Acquires Assets of Total Brake Industries, Inc.
12 November 1999
Universal Automotive Industries, Inc. Acquires Assets of Total Brake Industries, Inc.CHICAGO, Nov. 12 -- Universal Automotive Industries, Inc. , is pleased to announce the acquisition of certain assets of Total Brake Industries, Inc. located in Walkerton, Virginia. Total Brake Industries, Inc. is a friction formulator and manufacturer of strip friction lining used in the manufacture of brake shoes. Total also formulates and manufactures disc brake pucks. Assets acquired include substantially all the manufacturing assets and inventory related to the Walkerton facility. The total purchase price was approximately $1.5 million. Universal will maintain operations in Virginia and believes that production will expand as Universal increases its market share in the friction products segment. "This acquisition accomplishes two important company objectives at very favorable economics," commented Arvin Scott, President and CEO. "First, it gives Universal increased capacity for producing disc brake pucks and remanufacturing brake shoes. Currently, Universal is operating at full capacity in both types of product at its Canadian facility that cannot be economically expanded due to space constraints. Secondly, it gives Universal the ability to produce its own friction strip lining at a substantial savings over the cost of purchasing this material from third party suppliers." The Company is a manufacturer and distributor of brake rotors, drums, disc brake pads, relined brake shoes, wheel cylinders and brake hoses for the automotive aftermarket. The Company markets approximately 50% of its product under its UBP trademark (Universal Brake Parts) and as the Ultimate brand, with the balance under its customers' private labels. For further information, contact the Company c/o Jerome J. Hiss, CFO 708-293-4050. This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by safe harbors created hereby. Such forward-looking statements involve known and unknown risks, uncertainties (including those risk factors referenced in the Company's filings with the Securities and Exchange Commission), and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance, or achievements of the Company expressed or implied by such forward-looking statements. CONTACT: Jerome J. Hiss, CFO of Universal Automotive Industries, 708-293-4050, ext. 227.