Commercial Vehicle Group Acquires Assets of Gage Industries Fabrication Division
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Commercial Vehicle Group, Inc.
6530 W. Campus Oval
New Albany, OH, 43054
Press release date: October 31, 2007
NEW ALBANY, Ohio, Oct. 31 - Commercial Vehicle Group, Inc. (NASDAQ:CVGI) announced today that it has acquired the assets of the injection molding and heavy-gauge thermoforming Fabrication Division of Gage Industries, Inc. ("Gage"). The Fabrication Division has facilities in Tigard and Lake Oswego, Oregon. The other divisions of Gage Industries will not be impacted by this transaction.
The Fabrication Division of Gage Industries is a producer of heavy-gauge and twin-sheet thermoforming composites. Its products are primarily used in the production and assembly of cabinetry and a variety of other products for original equipment manufacturers (OEMs) in the heavy truck industry.
"This purchase creates a unique opportunity for CVG to expand its manufacturing capabilities and product offerings and fully supports our growth and market development strategies," stated Jerry Armstrong, President of Commercial Vehicle Group's Global Truck Division. "The Fabrication Division fits very nicely into CVG's strategy to be the premier supplier of interior and exterior parts as well as other systems for cab-related products. It also brings important new technologies to CVG that should help us to continue to build a strong industry leadership position, develop new markets and better serve both existing and future customers," added Armstrong.
CVG will immediately begin production and assembly of cabinetry and other products for customers in the heavy-duty truck market. Total cash consideration for the transaction was approximately $5.3 million. The Company estimates the transaction to be neutral to the Company's diluted EPS for the remainder of 2007 and accretive by approximately $0.02 per diluted share for the full year 2008.
For the period of November 1, 2007 to December 31, 2007, the Company expects revenues from the transaction to be in the range of approximately $3.2 million with operating income and depreciation in the range of $0.1 million. For the full year 2008, the Company expects revenues from the transaction to be in the range of $16.0 million, operating income in the range of $1.0 million and depreciation in the range of $0.6 million.
Jeff Gage, Chief Executive Officer of Gage Industries said, "The sale of our Fabrication Division's operations to CVG is a strategic move that we expect to serve both companies well. By spinning off the Fabrication Division of Gage Industries, we will be in a better position to focus on Gage's core businesses, conducted through our Extrusion and Commercial Packaging Divisions."
Liz Gage, Executive Vice President for Sales also remarked, "Gage also believes the Fabrication Division will integrate well with CVG's existing product lines and marketing strategy. This combination should help ensure new opportunities for the Division and the continued flow of high-quality products to our customers."
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group is a leading supplier of fully integrated system solutions for the global commercial vehicle market, including the heavy-duty truck market, the construction and agriculture market and the specialty and military transportation markets. The Company's products include suspension seat systems, interior trim systems, such as instrument and door panels, headliners, molded products, cabinetry and floor systems, cab structures and components, mirrors, wiper systems, electronic wiring harness assemblies and controls and switches specifically designed for applications in commercial vehicle cabs. The Company is headquartered in New Albany, OH with operations throughout North America, Europe and Asia.
Information about the Company and its products is available on the internet at www.cvgrp.com.
Source: Commercial Vehicle Group, Inc. Web site: http://www.cvgrp.com/