McLaren Performance Technologies signs Lltter of intent to acquire Comptech Machine. LIVONIA, Mich., July 24 -- McLaren Performance Technologies (NASDAQ:MCLN) has signed a Letter of Intent to acquire Comptech Machine, a recognized ...
McLaren Performance Technologies signs Lltter of intent to acquire Comptech Machine.
LIVONIA, Mich., July 24 -- McLaren Performance Technologies (NASDAQ:MCLN) has signed a Letter of Intent to acquire Comptech Machine, a recognized California-based automotive race engine builder and leading source for high-performance aftermarket components in the imported, sport-compact category. It is anticipated that the acquisition will be completed by late 2002.
Comptech was founded in 1979 by Doug Peterson and Don Erb and is recognized for providing race proven technology for the street. Using the knowledge gained in numerous racing achievements from SCCA and IMSA championships to Indy 500 poles and wins, the El Dorado Hills firm has also been providing quality performance parts into the imported and sport compact aftermarket since 1994. Bruno Junqueira qualified on the pole of the 2002 Indy 500 with a Comptech-built engine, as did Arie Luyendyk in 1999, while Juan Montoya's win at Indianapolis in 2000 was powered by Comptech.
"The combination of McLaren Performance Technologies and Comptech Machine capabilities, along with the power of our respective brands, will create unparalleled opportunity in the ever-increasing automotive performance aftermarket," according to Steven Rossi, president and CEO, McLaren Performance Technologies. "Factoring in the added capability of our recently acquired manufacturing company (what was formerly Dart Machine, Ltd.), we believe we are now incredibly well positioned to pursue new, higher margin markets in the performance and powertrain domain," he continued.
"Don Erb and I have grown Comptech Machine to a point where we are now ready to accelerate to the next level," according to Doug Peterson, Comptech Machine. "We believe that in combination with McLaren Performance Technologies, another performance-proven automotive entity, we can now expand our horizons still further. Most importantly, the ethic of both companies will remain rooted in winning races -- both on the track, and in the marketplace," he concluded.
The combined company is expected to enhance McLaren Performance Technologies' access into the automotive aftermarket through Comptech's established national sales and distribution channels. Likewise, Comptech's performance engineering capability will be bolstered by the McLaren Performance development infrastructure in Livonia, Michigan. McLaren Performance Products, formerly Dart Machine, Ltd. in Oldcastle, Ontario, Canada, can produce specialty products in volume to support both.
Comptech Machine currently has some 41 employees, and operates from two (17,000 and 14,000 square foot) facilities. Comptech serves such racing customers as Toyota and General Motors, along with teams like Target/Chip Ganassi Racing, while they offer performance aftermarket parts for Honda, Acura and Mini brands. The company's 2001 revenues totaled $7.5 million. See http://www.comptechusa.com/ for further details.
McLaren Performance Technologies provided full-service design, development, fabrication, manufacturing, testing, validation, and certification of automotive and racing powertrains, and related components. The company was originally established in 1969 as the engine development company for Bruce McLaren Motor Racing.
It operates out of four facilities in Livonia, Michigan totaling 67,000 square-feet, along with its 38,000 square-foot machining center in Canada, and employs approximately 130. McLaren Performance is both ISO-registered and QS- certified and serves such customers as General Motors, Ford Motor Company, DaimlerChrysler (MOPAR), CSI, Bosch, NGK, Engelhard, MSX, Ishikawa, Eaton, New Venture Gear and Magna Steyr. For calendar year 2001, McLaren Performance Technologies revenues totaled $15.9 million. Visit http://www.mclarenperformance.com/ for more information.
This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the "safe harbor" created thereby. These statements include the plans and objectives of management for future operations, including plans and objectives. The forward-looking statements herein are based on current expectations that involve judgments with respect to, among other things, future economic, competitive, and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond control of the company. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any one of the assumptions could be inaccurate and, therefore, can be no assurance that the forward-looking statements included in this release will prove to be accurate.