Martinrea International Inc.

Martinrea International Inc.

May 15, 2006 09:31 ET

Martinrea International Inc. Announces Acquisition of Depco International Inc.

TORONTO, ONTARIO--(CCNMatthews - May 15, 2006) - Martinrea International Inc. (TSX:MRE), a leader in the production of quality metal parts, assemblies and modules and fluid management systems focused primarily on the automotive sector, announced today that it completed the acquisition of the assets of Depco International Inc. Depco has annual sales of approximately $50 million. Martinrea purchased Depco's manufacturing equipment for approximately $6.5 million, working capital of $12 million and goodwill of $1.1 million. The asset purchase will be funded through the payment of approximately $20 million in cash.

Depco is a leading manufacturer of roll formed metal products that incorporate injection molded plastic to produce finished exterior products, and interior trim products and assemblies. The company has successfully been in business for over four decades, and has a recognized name and a good reputation for high quality products and services. Depco is a Tier 1 supplier, primarily to General Motors and Daimler Chrysler, with an outstanding reputation for quality. Depco's facility is located in Brampton and has achieved all required quality standards, and a superior quality assurance record. The new name for the business will be Rollstar Metal Forming.

Fred Jaekel, Martinrea's Chief Executive Officer, stated: "This is an excellent opportunity for our company as it expands our product line and our technological capability. Depco's operations will increase our roll forming and extrusion skill sets, which can be complementary to some of our existing operations in the United States. The acquisition of Depco expands our product offering to our customers, who are very supportive of this transaction, and we look to grow business with them, as well as capitalizing on opportunities with new customers in future. I want to personally welcome our new employees at Depco, now Rollstar, into the Martinrea family, and look forward to working with them as part of a growing, exciting and healthy company that can provide significant opportunity."

Rob Wildeboer, Martinrea's Chairman, added: "As we indicated at our annual meeting and in our recent releases, there are many potential acquisition opportunities in the automotive industry today. We indicated that we would look at opportunities and take action where prudent and profitable to do so. We believe the Depco acquisition is a good source of revenue growth, and will be accretive to our earnings. The transaction has been financed by our own cash reserves and, we believe, represents good value. Martinrea has developed a high level of expertise in integrating a wide variety of operations into our culture and decentralized operating system over time, and we expect the integration process will be very smooth. We thank all the members of our acquisition team who worked very hard on this transaction."

The common shares of Martinrea trade on The Toronto Stock Exchange under the symbol "MRE".

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intend" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to the Company. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include such risks and factors as are detailed from time to time in the Company's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Actual results may differ materially from those currently anticipated. The Company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Martinrea International Inc.
    Nick Orlando
    President and Chief Financial Officer
    (416) 749-0314
    (905) 264-2937 (FAX)
    30 Aviva Park Drive
    Vaughan, Ontario L4L 9C7