Automotive Performance Group, Inc. Completes Sale of Klein Engines
5 April 2000
Automotive Performance Group, Inc. Completes Sale of Klein Engines, Sells Boyds' Appearance Products Business
NEW YORK--April 5, 2000--Midyear
Automotive Performance Group, Inc. (OTCBB: RACG) announced today it has completed the previously disclosed sale of its Klein Engines and Competition Components Division and has sold the appearance products business of its 80% owned Boyds Wheel and Hot Rods by Boyds subsidiary.
The Company also announced the planned sale of the wheel business of Boyds. Terms were undisclosed.
These sales will complete the most critical elements of Automotive Performance Group's (APG) asset divestment program, which was initiated last year.
"Our asset divestment program is on schedule, and we expect it will be completed by midyear," said Dean M. Willard, APG's Chairman and Chief Executive Officer. "We expect the proceeds from these sales to be used to reduce and/or restructure our debt and for general operating expenses."
Mr. Willard added, "Our management's goal has been to eliminate the operating expenses of APG and to move our Company out of auto racing and into specialty materials for niche markets. In addition to our asset divestment program we have also aggressively pursued the favorable resolution of certain legal proceedings involving APG and its current and former subsidiaries, another area where we have had excellent results."
The APG executive noted he expected that the Company's soon-to-be released financials for the year ended December 31, 1999, and financial disclosures to be made later this year will demonstrate Automotive Performance Group's progress and success. "We expect to significantly reduce or eliminate our operating losses by the end of June," Mr. Willard added.
"We are primarily driven by our desire to protect our 22% ownership interest in PBT Brands, Inc., the parent company of Permatex, Inc. and Advanced Chemistry and Technology, Inc. These businesses are progressing extremely well and we expect their revenues during 2000 will exceed $130 million," Mr. Willard stated. "We are also focused on maximizing the return on Boyds for our shareholders, which requires exiting activities that have historically been unprofitable."
Mr. Willard noted, "The Company expects to be in a position by midyear to begin taking advantage of new opportunities for growth. We are already in negotiations with certain suppliers to the automotive aftermarket, which will allow APG to begin generating operating revenues and a return for services provided. These efforts also involve leveraging our management contacts in the industry and our resources in the financial community. We are also looking into various acquisitions that would be accretive to earnings and equity," Mr. Willard said.
Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties which may affect Automotive Performance Group, Inc.'s business and prospects and cause actual results to differ materially from these forward-looking statements.
Automotive Performance Group, Inc., participates in the fast-growing high-performance automotive and specialty chemical industries through its 22% equity ownership in PBT Brands Inc., a leading manufacturer, distributor, and marketer of premium functional chemical products to the automotive maintenance and repair markets, and Advanced Chemistry and Technology, Inc. (AC Tech), which develops and manufactures sealants for the aerospace and aircraft industry.