Dura Automotive Announces Acquisition of the Seat Track Business Of Meritor Automotive
MINNEAPOLIS, Oct. 28 /PRNewswire/ -- Dura Automotive Systems, Inc. (Nasdaq: DRRA - news) today announced that it has agreed to acquire the seat adjusting systems business of Meritor Automotive, Inc. (NYSE: MRA - news; ''Meritor''), for total cash consideration of $130 million. The transaction, which is subject to regulatory approval, is expected to close during the fourth quarter of 1999.
Meritor's seat track business manufactures seat track adjusting mechanisms for the North American automotive industry. Meritor, with operations in Bracebridge, Ontario and Gordonsville, Tennessee, had revenues of approximately $130 million for the fiscal year ended September 30, 1999. Meritor's seat track business is a Tier II supplier to Lear Corporation and other automotive interior suppliers.
In commenting on the acquisition, Dura president and chief executive officer, Karl F. Storrie, said, ''The acquisition of Meritor's seat track business will advance Dura's strategic focus to expand its presence in the seat systems market. The acquisition will broaden Dura's technology base by adding power seat track capabilities to its current product portfolio. In addition, the acquisition of the seat track business will give Dura the size it needs to be a leading supplier in this segment.''
Dura Automotive Systems, Inc. is the world's largest independent designer and manufacturer of driver control systems and a leading global supplier of door systems, window systems and engineered mechanical components for the global automotive industry. The company is also a leading supplier of similar products to the North American recreational vehicle, mass transit and heavy truck market. The company's products include door modules, parking brake systems, automotive cables, transmission shifter systems, encapsulated and sliding windows, window regulators, hinges, latches, seating systems, engine control products, underbody tire carriers, jacks, brake, clutch and accelerator pedals and other mechanical assemblies. The company's products are sold to every North American, European and Japanese original equipment manufacturer, including Ford, General Motors, DaimlerChrysler, Volkswagen, BMW, Toyota, Honda, Nissan, PSA (Peugeot and Citroen) and Renault. Dura's operating headquarters is in Rochester Hills, Mich., and its corporate office is in Minneapolis, Minn.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. Such forward-looking statements are based on the belief of the management of Dura and Meritor as well as on assumptions made by and information currently available to Dura and/or Meritor, as the case may be, at the time such statements were made. Such forward-looking statements relate to, among other things, (i) the expected closing date of the acquisition, and (ii) the anticipated benefits of the acquisition. Actual results could differ materially from those projected in the forward-looking statements as a result of (i) unexpected delays in obtaining regulatory approvals; (ii) the inability of either Dura or Meritor to satisfy the conditions to the consummation of the acquisition; (iii) unforeseen difficulties in integrating the operations of Dura and Meritor's seat track business, or (iv) unanticipated negative reaction to the proposed transaction by customers, suppliers or stockholders.
SOURCE: Dura Automotive Systems, Inc. |
