Auto Industry Veterans Including Stallkamp and Losh Named to New MascoTech Board
11 October 2000
Auto Industry Veterans Including Stallkamp and Losh Named to New MascoTech Board
BLOOMFIELD HILLS, Mich., Oct. 11 Heartland Industrial
Partners, L.P. today announced its intent to name several highly respected
automotive industry veterans to the board of directors of MascoTech, Inc.
following its pending recapitalization. These include Thomas Stallkamp, J.
Michael Losh and David I. Margolis. Richard Manoogian, the current chairman
of MascoTech, and Lee Gardner, its current president and chief operating
officer, will also serve on the new board.
"We are extremely gratified that our metal platform buildup strategy based
on MascoTech will have advice and guidance from such an accomplished and
deeply experienced group of automotive industry leaders," said David Stockman,
senior managing director of Heartland. "Our strategy here is 'buy and build'
for the long-haul, and we are confident that each of these prospective
directors will add valuable insight and judgment to that task."
J. Michael Losh, who will become chairman of the new MascoTech board
following the transaction, recently retired from his position as chief
financial officer of General Motors Corp. During his 36 years at GM, Losh
served in a variety of operating and financial posts in the United States,
Mexico and Brazil. These included stints as general manager of the Pontiac
and Oldsmobile divisions and head of North American sales service and
marketing.
Thomas Stallkamp was formerly president of DaimlerChrysler Corp. Over the
prior two decades he had been an innovator and leader at Chrysler --
transforming its purchasing and logistics operations into an industry model.
He is currently vice chairman and chief executive officer of MSX
International, a technology based business services firm.
David I. Margolis retired in 1995 after serving 10 years as chairman and
chief executive officer of Coltec Industries, a diversified manufacturer of
aerospace, industrial and heavy truck components.
Stockman also indicated that the new MascoTech board will consist of a
majority of Heartland-designated directors including Heartland partners
Timothy D. Leuliette and Cynthia L. Hess, who both have extensive auto
industry experience. Leuliette was the former president and chief operating
officer of Penske Corp. and served in a similar capacity at ITT Automotive.
Hess, who was most recently the manager of quality at DaimlerChrysler, had
previously served in a variety of engineering and operating roles at Chrysler
over the last two decades.
Officials at Heartland also indicated that they intend to manage MascoTech
as two essentially independent businesses reporting separately to the board of
directors. MascoTech's steel forging, powdered metals, and fasteners
operations will be combined into the metal forming platform. MascoTech's
other businesses, which make towing and related accessory products, gaskets
and sealants, and other specialized industrial products, will be operated
separately as the Diversified Industrial Group.
Lee Gardner, who is currently the president and chief operating officer of
MascoTech, will become the president and chief executive officer of the
MascoTech Diversified Industrial Group.
Heartland also announced that it will form a board committee, to be
chaired by Heartland partner Tim Leuliette, to lead a search for a new chief
executive officer of MascoTech and the metal forming platform. Richard
Manoogian will also serve on the search committee.
Until the new chief executive officer is appointed, Leuliette will serve
as interim chief executive officer of MascoTech and the metal forming
platform.
"We believe MascoTech's metal forming platform has a unique opportunity to
add capabilities and deliver the total metal outsourcing solutions customers
are looking for," said Leuliette.
Separately, Simpson Industries, Inc. a designer, developer and producer of
precision engineered automotive metal parts, announced on Sept. 29 that it had
reached an agreement to be acquired by Heartland. In that press release,
Heartland stated that acquiring both Simpson and MascoTech is part of its
overall strategy to create a full services metal forming platform.
"Our investment strategy is to provide the capital to build a great multi-
metals, multi-process, total solutions provider of forgings, castings and
finished components to automotive manufacturers," Stockman said. "Adding a
world class company like Simpson would be a huge first step toward satisfying
customers' needs."
The recapitalization of MascoTech, which is expected to close before year-
end, is subject to certain conditions, including the completion of financing
and the approval by a majority of the public stockholders of MascoTech other
than Masco Corporation, Manoogian and his related affiliate. The Chase
Manhattan Bank has provided financing commitments for aggregate senior debt
and receivables financing of approximately $1.5 billion. Heartland is being
joined in the transaction by CSFB Private Equity and several other co-
investors which are limited partners in Heartland's fund.
Heartland Industrial Partners, L.P. is a private equity firm established
to "buy, build and grow" industrial companies in sectors ripe for
consolidation and long-term growth. The firm has equity commitments in excess
of $1.1 billion and intends to increase its commitments to $2 billion.
Heartland was founded by David A. Stockman, a former partner of The Blackstone
Group and a Reagan administration cabinet officer; Timothy D. Leuliette, the
former president and chief operating officer of Penske Corporation; and Daniel
P. Tredwell, a former managing director of Chase Securities.
MascoTech is a diversified manufacturing company with world-leading metal
forming process capabilities and proprietary product positions serving
transportation, industrial and consumer markets.