ANDERSON, Ind., Jan. 31 /PRNewswire/ -- Remy International, Inc. ("Remy
International" or the "Company"), announced today the signing of an
agreement for the sale of its light and medium truck diesel engine and
component remanufacturing business conducted by Franklin Power Products,
Inc. and International Fuel Systems to Caterpillar Inc. for a cash purchase
price of $150 million. The purchase price is subject to adjustment for net
investment in the business, including working capital, at closing. The
transaction is subject to customary closing conditions, and is expected to
close before the end of the first quarter of 2007.
"The sale to Caterpillar represents a strategic opportunity to realize
value for our stakeholders," said John Weber, President and Chief Executive
Officer of Remy International. "This business has performed very well,
which is a testament to the total commitment of the employees to quality
and lean manufacturing. I want to thank these employees for their
dedication and efforts."
"This acquisition represents an excellent strategic fit between Cat
Reman and these two companies. It increases our overall product and service
offering, and will provide a platform for future growth opportunities for
Cat Reman," said Steve Fisher, Caterpillar vice president with
responsibility for remanufacturing.
The first $50 million of proceeds from the transaction will be held in
a restricted account, pledged as collateral to the Company's senior lenders
and available for withdrawal only with consent of the lenders under the
Company's senior credit facility. Next, the proceeds will be used to pay
down outstanding revolver borrowings at the time of the closing under the
Company's senior secured revolving credit and term loan facility and the
revolving lender commitments under the facility, currently $160 million,
will be reduced by $40 million. Any remaining proceeds also will be held in
the restricted account, and generally will be available for use by the
Company for capital expenditures, to repay revolver borrowings (with a
corresponding reduction in the revolver commitment) and general corporate
purposes.
The divestiture was managed for Remy by Brookwood Associates, L.L.C.
under the direction of Thomas L. Temple. Weber commented, "I am very
pleased with the high degree of competent and professional transaction
management provided by both Tom and his team at Brookwood. They were a
great resource to Remy over the past several months."
About Remy International, Inc.:
Remy International, Inc., headquartered in Anderson, Indiana, is a
leading manufacturer, remanufacturer and distributor of Delco Remy brand
heavy-duty systems and Remy brand starters and alternators, diesel engines,
locomotive products and hybrid power technology. The Company also provides
a worldwide components core-exchange service for automobiles, light trucks,
medium and heavy-duty trucks and other heavy-duty, off-road and industrial
applications. Remy was formed in 1994 as a partial divestiture by General
Motors Corporation of the former Delco Remy Division, which traces its
roots to Remy Electric, founded in 1896.
Caution Regarding Forward-Looking Statements:
This press announcement contains statements relating to future results
of the Company that are "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995 (the "Act") or by the
Securities and Exchange Commission ("SEC") in its rules, regulations and
releases. The Company desires to take advantage of the "safe harbor"
provisions in the Act for forward-looking statements made in this press
announcement. Any statements set forth in this press announcement with
regard to its expectations as to financial results and other aspects of its
business may constitute forward- looking statements. These statements
relate to the Company's future plans, objectives, expectations and
intentions and may be identified by words like "believe," "expect," "may,"
"will," "should," "seek," or "anticipate," and similar expressions. The
Company cautions readers that any such forward- looking statements are
based on assumptions that the Company believes are reasonable, but are
subject to a wide range of risks including, but not limited to, the risk of
not closing the diesel remanufacturing business divestiture transaction and
its effect on liquidity, risks associated with the uncertainty of future
financial results and liquidity, the incremental liquidity provided by the
term loan is subject to borrowing base and other limitations on the
Company's ability to borrow under its revolving credit facilities or
otherwise, dispositions, acquisitions and integration costs, additional
financing requirements, ability to make required interest payments,
development of new products and services, the effect of competitive
products or pricing, the effect of commodity and raw material prices, the
impact of supply chain cost management initiatives, restructuring risks,
enterprise resource planning implementation risks, customs duty claims,
litigation uncertainties and warranty claims, conditions in the automotive
industry, foreign currency fluctuations, costs related to re-sourcing and
outsourcing products, the effect of economic conditions and other
uncertainties detailed from time to time in the Company's filings with the
SEC. Due to these uncertainties, the Company cannot assure readers that any
forward-looking statements will prove to have been correct. Remy
International is under no obligation to (and expressly disclaims any such
obligation to) update or alter any forward-looking statements whether as a
result of new information, future events or otherwise.
Remy International Website: http://www.remyinc.com
SOURCE Remy International, Inc.
 back to top
Related links:
http://www.remyinc.com
http://www.prnewswire.com/comp/111635.html /
CONTACT:
Leah Campbell, Corporate Communications, of
Remy International, +1-765-621-3797, or Campbell.leah@remyinc.com
|
