Hayes Lemmerz Announces Agreement for the Sale of its Commercial Highway Hub & Drum Business
20 October 2005 - 9:30PM
PR Newswire (US)
NORTHVILLE, Mich., Oct. 20 /PRNewswire-FirstCall/ -- Hayes Lemmerz
International, Inc. (NASDAQ:HAYZ) today announced that it has
entered into a stock purchase agreement for the sale of its
Commercial Highway Hub and Brake Drum business to Precision
Partners Holding Company, a multi-national supplier of complex
precision machined components, tooling, and assemblies. This
transaction does not include the Company's Automotive Brake
Business that manufactures brake components for the passenger car
and light truck market. Under the terms of the stock purchase
agreement, Hayes Lemmerz agreed to sell all of the issued and
outstanding shares of capital stock of certain subsidiaries which
operate the Company's Commercial Highway Hub and Drum business for
approximately $51 million. The Hub and Drum business includes the
Company's operations in Berea, Kentucky, Chattanooga, Tennessee and
in Mexico City, Mexico. Annual sales for these operations are
approximately $110 million and they employ approximately 545
people. Hayes Lemmerz intends to use a portion of the net proceeds
from the sale to reduce the principal amount of its Term B loan and
a portion to provide additional liquidity as permitted by the
Company's Amended and Restated Credit Agreement. The transaction is
subject to certain closing conditions and is expected to close on
or before November 30, 2005. However, there can be no assurance
that the conditions to closing will be satisfied or that the
closing will occur on or before November 30, 2005, or at all. "The
Commercial Highway Hub and Drum business is performing well
financially. With a solid customer base, excellent brand and great
people, it has significant growth opportunities in its target
markets," said Curtis Clawson, President, CEO and Chairman of the
Board. "This transaction, however, will enhance liquidity and will
help focus the Company on core products in select geographic
areas." Hayes Lemmerz International, Inc. is a leading global
supplier of automotive and commercial highway wheels, brakes,
powertrain, suspension, structural and other lightweight
components. The Company has 39 facilities and approximately 11,000
employees worldwide. This press release includes forward looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934, as
amended, which represent the Company's expectations and beliefs
concerning future events that involve risks and uncertainties which
could cause actual results to differ materially from those
currently anticipated. All statements other than statements of
historical facts included in this release are forward looking
statements. Factors that could cause actual results to differ
materially from those expressed or implied in such forward looking
statements include the factors set forth in our periodic reports
filed with the SEC. Consequently, all of the forward looking
statements made in this press release are qualified by these and
other factors, risks, and uncertainties. DATASOURCE: Hayes Lemmerz
International, Inc. CONTACT: Marika P. Diamond of Hayes Lemmerz
International, Inc., +1-734-737-5162 Web site:
http://www.hayes-lemmerz.com/
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