TORONTO, ONTARIO--(CCNMatthews - Dec. 1, 2006) - Martinrea International Inc. (TSX:MRE), a leader in the production of quality metal parts, assemblies and modules and fluid management systems focused primarily on the automotive sector, announced today it has completed the previously announced purchase of the North American automotive body and chassis operations of ThyssenKrupp Budd Company of Troy, Michigan. The purchase price for the transaction was approximately US$275 million, comprised of US$95 million in cash and the balance in assumed liabilities. The cash portion of the transaction was funded from credit funding sources arranged by Martinrea.
The North American body and chassis operations acquired by Martinrea specialize in a wide variety of metal forming activities, including Class A body stamping, metallic welded assemblies, hot metal stampings, automotive sheet metal stamping and the module assembly of a wide variety of chassis component parts. The acquired operations cover 13 plants throughout North America, with over 3500 employees, as well as a technical centre in Michigan.
The acquired assets include a large Class A body stamping facility in Shelbyville, Kentucky, which produces sheet metal automotive body stampings and assemblies, such as doors and fenders, in a facility approximating one million square feet. This is Martinrea's first Class A facility. A facility in Hopkinsville, Kentucky produces chassis frame modules, components and suspension assemblies. A facility in Hermosillo, Mexico, located near Martinrea's existing fuel tank plant, assembles chassis products such as engine cradles. Included in the purchase are six plants operated by Thyssenkrupp Fabco, which produces medium and heavy metal stampings, weldments and major tubular fabrications, in the southern state locations of Springfield, Tennessee and Tupelo, Mississippi, thus giving Martinrea a metal manufacturing base in the southern United States as well as in the MidWest and northern states; as well as Fabco plants in Michigan and three locations in southern Ontario. A facility in Kitchener, Ontario, builds full sized chassis frames and frame components, bumpers and bumper reinforcements. The purchased assets also include the systems assembly facilities of Thyssenkrupp Budd Systems, that will allow Martinrea to become an integrator of customer modules including rear suspension modules for cars and sport utility vehicles in locations in the United States, Canada and Mexico.
Fred Jaekel, Martinrea's Chief Executive Officer, stated: "I am happy to announce the completion of this great acquisition. We at Martinrea welcome all the people from ThyssenKrupp Budd's North American body and chassis operations to our Martinrea family and look forward to the development of a strong bond between us. I also want to thank all the members of the acquisition team for their hard work in completing this purchase on a timely and efficient basis."
The common shares of Martinrea trade on The Toronto Stock Exchange under the symbol "MRE".
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intend" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to the Company. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include such risks and factors as are detailed from time to time in the Company's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Actual results may differ materially from those currently anticipated. The Company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Martinrea International Inc. Nick Orlando President and Chief Financial Officer (416) 749-0314 (905) 264-2937 (FAX)