Automotive Intelligence

News of  April 25, 1999

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Federal-Mogul Completes Sale of South African Heat Transfer Business
Southfield, Mich., 21 April 1999 - Federal-Mogul Corporation's (NYSE: FMO) Chairman and Chief Executive Officer Dick Snell announced today the sale of the company's South African heat transfer business to Behr GMBH & Co., DM 3 billion German manufacturer of engine cooling systems and air conditioning products headquartered in Stuttgart, Germany. The Federal-Mogul heat transfer business manufactures automotive heating and cooling systems and components for South Africa and certain export markets.

The heat transfer business had sales in 1998 of approximately $56 million, manufactures in four South African locations and employs approximately 1,200 people. Terms of the acquisition were not disclosed.

Dick Snell, Chairman and Chief Executive Officer Federal-Mogul

Dick Snell, Chairman and Chief Executive Officer Federal-Mogul

"The heat transfer operation is a very good business that strategically fits better with a global manufacturer of such systems like Behr," said Snell. "The sale allows us to focus on the core products of gaskets, pistons and bearings in South Africa as an integral part of our global strategy. It also provides the funding for our December 1998 purchase of the 49% minority holding in our South African group, which going forward will have annual sales of approximately $100 million."

Headquartered in Southfield, Michigan, Federal-Mogul is an automotive parts manufacturer providing innovative solutions and systems to global customers in the automotive, light truck, heavy-duty, and farm and industrial markets. The company was founded in 1899.

 

Hayes Lemmerz International Completes Acquisition of Metaalindustrie Bergen B.V., a World Class Machining Supplier in The Netherlands
ROMULUS, Mich., 23 April 1999 - Hayes Lemmerz International, Inc. (NYSE: HAZ), the world's largest supplier of wheels as well as brake and suspension components to the transportation industry, today announced that its subsidiary Metaalgieterij Giesen B.V. (MGG) has successfully completed the acquisition of Metaalindustrie Bergen B.V. (MIB). Terms of the transaction were not disclosed.

The acquisition is expected to expand Hayes Lemmerz's machining capacity in Europe and to enable MGG to grow its business in finished aluminum cast products for the automotive, heavy truck and heating industries. MIB is a full service machining supplier, specializing in the machining of large aluminum castings for a variety of automotive and industrial applications and is located in Bergen, Netherlands. MIB has 24 state-of-the- art machining centers at its 40,000-square-foot manufacturing facility and has approximately 100 employees.

"This is an important strategic step for MGG," said Harrie Giesen, Managing Director of MGG in making the announcement. "With the acquisition of MIB, we now have expanded in-house manufacturing capability and capacity to provide our customers finished machined castings." This world class operation provides a strong base for expansion as we grow MGG sales, as well as sales of other Hayes Lemmerz aluminum products in Europe."

Hayes Lemmerz International, Inc., with the completion of its acquisition of CMI International, is one of the world's leading global suppliers of automotive and commercial highway wheels, brakes, suspension, structural and other light weight components. Together, the company has pro forma sales of close to $2.5 billion with 40 plants, 10 joint ventures and over 15,000 employees worldwide.

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