Continueing to add to shareholder value, who could hate this company:
Cordant To Acquire Jacobson Mfg. Co. Inc.
Thursday, May 14, 1998 04:31 PM
OGDEN, Utah, May 14 /PRNewswire/ -- Cordant Technologies Inc. announced today that its Huck
International subsidiary has entered into an agreement to buy all of the outstanding shares of
Jacobson Mfg. Co. Inc.
Founded in 1950, Jacobson is a leading manufacturer of high-quality, custom-designed metal parts
and fasteners and precision-engineered plastic products. Jacobson fastening systems and other
cold-formed products are used in automotive, construction, consumer products and heavy equipment
applications. Jacobson's injection molded plastic products include a variety of components and end
products used in the computer, telecommunications and medical industries. Jacobson is 100 percent
beneficially owned by Harvey Jacobson, its founder and Chairman. Revenues for 1998 are projected to
be approximately $145 million.
Cordant Technologies will finance the acquisition with existing bank lines of credit. Subject to certain
adjustments provided for in the Stock Purchase Agreement, the total consideration to be paid is $270
million. Closing of this transaction is expected to take place before the end of this quarter and is
subject to regulatory approvals.
James R. Wilson, Chairman and Chief Executive Officer of Cordant Technologies said: "Jacobson is a
perfect fit with our Huck operation. Jacobson broadens our offering in the industrial fastener sector
and puts us into the rapidly growing market for precision plastic components. Jacobson is a highly
profitable, well run company. The acquisition is expected to be slightly accretive in the first full year."
Morgan Stanley & Co. Incorporated is acting as financial advisor to Cordant Technologies. Chase
Securities Inc. is acting as financial advisor to Jacobson.
With more than 16,500 employees worldwide, Cordant Technologies (NYSE: CDD) is a strategically
balanced global business with consolidated annual sales of approximately $2.2 billion. Cordant
Technologies' Thiokol Propulsion business is the leading producer of solid propulsion systems, and
its Huck International subsidiary delivers high performance industrial and aerospace fastener
systems. Cordant Technologies also holds a majority interest in Howmet International Inc., a global
manufacturer of aircraft and industrial gas turbine engine components.
This release contains forward-looking statements that are subject to certain risks and uncertainties
that could cause actual results to differ materially from those projected in such statements. Such
risks and uncertainties include, but are not limited to, unanticipated slowdowns in the company's
major markets, the impact of competition, the effectiveness of operational changes expected to
increase efficiency and productivity, and worldwide economic and political conditions and foreign
currency fluctuations that may affect worldwide results of operations.
SOURCE Cordant Technologies Inc.
CONTACT: Lauren Sides, Public Relations of Cordant Technologies, 801-629-2292,
sideslb@thiokol.com |
