NEW ALBANY, Ohio, Oct. 31 /PRNewswire-FirstCall/ -- Commercial Vehicle Group, Inc. 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 http://www.cvgrp.com/.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to: (i) the Company's ability to develop or successfully introduce new products; (ii) risks associated with conducting business in foreign countries and currencies; (iii) general economic or business conditions affecting the markets in which the Company serves; (iv) increased competition in the heavy-duty truck market; (v) the Company's failure to complete or successfully integrate additional strategic acquisitions; and (vi) various other risks as outlined in the Company's SEC filings. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.
