Meritor to Acquire Tempered Spring Co.
8 February 2000
Meritor Suspension Systems Co. to Acquire Tempered Spring Co.: Strengthens European Market Presence and Builds Light Vehicle Systems' Undercarriage StrategyTROY, Mich., Feb. 8 -- Meritor Automotive, Inc. today announced that Meritor Suspension Systems Co. (MSSC), its joint venture with Mitsubishi Steel Manufacturing Co., has acquired privately-held Tempered Spring Co., a leading supplier of automotive suspension components based in Sheffield, England. The acquisition adds new products and processes to Meritor's portfolio as it expands its presence in the European suspensions market. Meritor's acquisition clearly demonstrates its strategic commitment to the automotive undercarriage business. Terry O'Rourke, Meritor senior vice president and president of Meritor LVS explained: "Today's acquisition underscores our commitment to our LVS vision by providing more focused technology offerings to our customers. We will continue to add to our component products and systems technology, as we pursue LVS' two-pronged strategic direction: become a Tier 1 global supplier both in undercarriage components and systems -- such as wheels, suspension systems, corner modules, and in aperture systems, that include door, access control and roof systems." Meritor Chairman and Chief Executive, Larry D. Yost said: "Pursuing acquisitions that complement our two strategic initiatives is a vital part of Meritor's balanced global growth strategy that includes organic growth through increased content per vehicle and expansion through acquisitions, joint ventures, marketing alliances; and technological advances. This growth strategy enhances shareowner value; positions us to outperform our competitors in meeting customer needs; and ensures balance and diversity in our product offering, customer base and geographic presence." O'Rourke added: "Europe continues to be a key market for long-term growth of Meritor's LVS business. This acquisition shows our commitment to building the industry's most comprehensive offering of suspension systems and components." According to Dr. Takeo Fukushima, managing director of Mitsubishi Steel: "It is very exciting for Mitsubishi, together with Meritor, to develop suspension products for premier automotive markets that include Europe, North America and Japan." Tempered Spring develops and supplies light-vehicle OEMs with hot- and cold-forming stabilizer bars and valve springs, as well as springs and metal components for non-automotive applications. The company employs approximately 350 people at its facility in Sheffield, England. The Meritor Suspensions Systems joint venture between Meritor and Mitsubishi Steel Manufacturing Company of Japan. It produces suspension systems and components, including coil springs, torsion bars and stabilizer bars. MSSC supplies several North American OEMs and exports to customers in Germany, Austria, Mexico, Brazil, Indonesia, Japan and the Middle East. The company has North American manufacturing facilities that are QS 9000 certified in Milton, and Chatham, Ontario, Canada, as well as Hopkinsville, Ky., in the United States. Tempered Spring will be the joint venture's first European operation. Meritor, with 1999 sales of $4.5 billion, is a global supplier of a broad range of systems and components for commercial, specialty and light vehicle OEMs and the aftermarket. Meritor consists of two businesses: Heavy Vehicle Systems, a leading supplier of complete drivetrain systems and components for medium- and heavy-duty trucks, trailers and off-highway equipment and specialty vehicles, including military, bus and coach, and fire and rescue; and Light Vehicle Systems, a major supplier of roof, door, access control, and suspension systems, and wheel products for passenger cars, light trucks and sport utility vehicles. For more information, visit the Meritor website at http://www.meritorauto.com This news release contains statements relating to future results that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the company's Securities and Exchange Commission filings.