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Universal Manufacturing Fuels Growth With Merger

18 October 2000

Universal Manufacturing Fuels Growth With Merger

         'Win-win' Helps Firm Increase Market Share and Reduce Costs

    ALGONA, Iowa, Oct. 17 On the heels of record sales for
fiscal year 2000, Universal Manufacturing Co., a leading Ford
automotive parts remanufacturing and distribution company, announced the
merger of its subsidiary, Universal Distribution, L.L.C., with one of the top
General Motors parts distributors in Iowa.
    Universal Distribution and Rainbo Oil Company of Dubuque, Iowa, have
agreed to merge their parts distribution businesses and have formed a new
partnership.  The name of this new partnership is Rainbo Company, L.L.C.  This
combined operation will continue the distribution of Motorcraft (Ford), AC
Delco (GM) parts and other lines, and will continue to do business as Value
Independent Parts (VIP).  VIP will be managed by Universal Manufacturing.
Universal Manufacturing Co. will continue to remanufacture and distribute
automotive parts to dealers and jobbers in the Midwest.
    Universal's president, Donald D. Heupel, says the merger reflects the
company's strategy of rapid growth to increase distribution capacity and sales
territory, while taking advantage of operating efficiencies to cut costs and
improve profitability.  "Consolidation is the watchword in our industry. The
market is demanding one-stop shopping and we're responding," says Heupel.
"This merger is a win-win.  It not only makes us more competitive but also
more profitable in the long-term."
    The merger also helps the company maintain a high standard of customer
service, which, Heupel says, is essential in the competitive aftermarket
business.  "VIP has an outstanding reputation with automobile dealerships,
independent jobbers, and repair shops in Iowa, Illinois, and Wisconsin."
    Continuity of relationships is essential to customer satisfaction, Heupel
says, and VIP has been fortunate to retain all key personnel, including branch
managers.  "Our merged staff recognize the opportunity we all have and are
very motivated to continue our record of growth." Universal reported record
sales for fiscal year 2000 of $21,631,919 - an 11 percent increase over fiscal
year 1999.
    After the merger, VIP and Universal will have a combined total of 10 sales
outlets in nine cities, 171 staff, and combined fiscal year 2000 annual sales
of $29,000,000.  "One of the benefits of consolidation to our customers is
strategically located sales outlets throughout their markets," says Heupel.