Noble Enters into Agreement To Sell Plastics and Coatings Group
28 December 1999
Noble International, Ltd. Enters into Agreement To Sell Plastics and Coatings GroupBLOOMFIELD HILLS, Mich., Dec. 27 -- Noble International, Ltd. today announced that it has entered into a definitive agreement to sell to a newly formed affiliate of Royal Bank Equity Partners Limited ("RBEP"), all of the stock of its Plastics and Coatings Group, which is comprised of Tiercon Industries Inc. ("Tiercon"), Cass River Coatings, Inc. ("CRC"), and Noble Component Technologies, Inc. ("NCT"). The aggregate purchase price is between $89 million and $94 million, consisting of $83.3 million in cash, plus the exchange of certain Noble Canada preferred securities, which are convertible into Noble common stock, followed by a future cash payment of up to $9.0 million, but no less than $4.0 million, based upon the performance of NCT and CRC over the next three years. Closing of the transaction is scheduled to occur in January 2000 and is subject to satisfaction of several conditions, including the approval of Noble's Board of Directors. Proceeds from the sale will be used to reduce the balance under Noble's revolving credit facility. Robert Skandalaris, Noble's Chairman and Chief Executive Officer stated that, "The sale of the Plastics and Coatings Group to RBEP represents a significant gain to our shareholders over our cost basis and will leave Noble with substantially reduced debt levels. The elimination of the principal portion of our senior debt will provide Noble with increased future cash flow and additional availability under our revolving credit facility. Noble will now be able use these benefits to focus its attention on the opportunities presented to increase shareholder value." Philip Olsson, RBEP's Managing Director, stated that, "We are delighted to be able to back such an outstanding management team and look forward to participating aggressively in the revolution which is now occurring in the automotive sector." RBEP is the merchant banking affiliate of Royal Bank of Canada, the largest banking group in Canada. RBEP provides private equity financing to support outstanding management teams. RBEP has partnered with the management team of Tiercon in agreeing to acquire the Plastics and Coatings Group of Noble. Noble International, Ltd. is a leading Tier II full-service supplier of automotive parts, component assemblies and value-added services to the automotive industry. As a supplier, Noble provides design, engineering, manufacturing, complete program management and other services to the automotive market. Noble delivers integrated component solutions, technological leadership and product innovation to original equipment manufacturers (OEMs) and Tier I automotive parts suppliers thereby helping its customers increase their productivity while controlling costs. Certain statements in this news release may be "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. Statements regarding future prospects and developments are based upon current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-lostatements, including those detailed in the company's filings with the Securities and Exchange Commission.