NEW ALBANY, Ohio, Dec. 5 /PRNewswire-FirstCall/ -- Commercial Vehicle
Group, Inc. (Nasdaq: CVGI) announced today that it has acquired certain assets
from Short Bark Industries, LLC ("SBI"), a supplier of seat covers and various
cut-and-sew trim products.
In exchange for the commercial vehicle cut-and-sew assets and operations
acquired from SBI, CVG paid approximately $3.6 million in cash and has assumed
approximately $1.9 million of net liabilities due to third parties and $1.3
million of net liabilities due to CVG.
Included in the transaction are two leased facilities in Tellico Plains
and Pikeville, Tennessee, which CVG management will assume responsibility for,
effective immediately. The two leased facilities employ approximately 200
associates and are located near CVG's seating operation in Vonore, Tennessee.
CVG also has a ninety-day option to assume the shares, assets or operations of
SBI's leased facility in Capilla de Guadalupe, Jalisco, Mexico, at no
additional purchase price consideration. There are approximately 14
associates employed at the Mexico facility.
Lisa Held Janke, owner and Chief Executive Officer of SBI, will retain
Short Bark's military division and continue to focus on the military apparel
Jerry Armstrong, President of Commercial Vehicle Group's Global Truck
Division, stated, "This acquisition is a great fit with CVG's operations as it
provides us with a platform for a cut-and-sew center of excellence and an
uninterrupted supply of seat covers and trim materials. SBI, which originated
in the highly-competitive textile environment, is skilled at removing waste in
the cutting operation and gaining productivity in the sewing process."
CVG 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.
"In addition to the strategic and logistical advantages, this transaction
provides us with a margin enhancement opportunity," said Chad M. Utrup, Chief
Financial Officer of Commercial Vehicle Group. "Because nearly all of the
cut-and-sew products from the acquisition will be supplied directly to our
existing operations, our top line revenue is not expected to increase;
however, we will realize bottom line margin improvement from the profitability
and productivity of the operations," added Utrup.
For the period of December 5, 2007 to December 31, 2007, the Company does
not expect any change to its previous estimates as a result of the
transaction. For the full year 2008, the Company does not anticipate an
increase in revenues and expects operating income in the range of $1.3 million
and depreciation in the range of $0.2 million as a result of this transaction.
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 .
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 this or 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.
SOURCE Commercial Vehicle Group, Inc.
/CONTACT: John Hyre, Investor Relations, Commercial Vehicle Group, Inc.,
/Web site: http://www.cvgrp.com /
CO: Commercial Vehicle Group, Inc.; Short Bark Industries, LLC
ST: Ohio, Tennessee, Mexico
IN: AUT MAC ECP
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7973 12/05/2007 12:07 EST http://www.prnewswire.com