Commercial Vehicle Group Announces Acquisition of India Seating Business
NEW ALBANY, Ohio, Nov. 5, 2012 /PRNewswire/ -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI) announced today that its company in India, CVG Seating (India) Private Limited (CVG India), has acquired substantially all of the seat assembly assets of Vijayjyot Seats Private Limited (Vijayjyot). The acquired business has three leased facilities in the Baska (State of Gujarat), Pune (State of Maharashtra) and Dharwad (State of Karnataka) regions of India and employs approximately 108 full time associates in addition to certain temporary workers at each of the three facilities.
The acquired business supplies seats primarily for the passenger, school and coach bus markets in India and its top four customers include Tata Motors, Tata Marcopolo, Ashok Leyland and Volvo/Eicher.
"This acquisition is an ideal match for our strategic plan of growth and expansion into the India commercial vehicle market and complements our existing initiatives in the construction and truck markets of India," said Mervin Dunn, President and Chief Executive Officer of Commercial Vehicle Group. "We look forward to working with the employees, customers and suppliers as we move forward with this exciting new opportunity," added Mr. Dunn.
Vijayjyot Seats Private Limited will continue as a stand-alone business as a supplier of certain materials and components for other customers and markets in India, as well as a supplier to CVG India for the acquired seat business.
Total upfront cash consideration for the transaction was approximately $13.7 million, with an additional maximum earn-out potential of up to approximately $1.9 million based on EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) performance during the first two years of the acquisition. For the full year 2013, the Company expects the acquisition to achieve revenues of approximately $28.0 million, operating income of approximately $1.4 million and depreciation and amortization expense of approximately $1.0 million. The Company expects the acquisition to be incremental to earnings per share by approximately $0.03 per share for the full year 2013.
For the remainder of 2012, the Company expects revenues from the acquisition to be approximately $3.0 million, operating income of approximately $0.1 million and depreciation and amortization expense of approximately $0.1 million.
"We have spent a considerable amount of time in India over the past 12 to 18 months working with Vijayjyot to gain a better understanding of our potential within the seating market in India. Along with our efforts already underway in India, we believe this acquisition is another step towards achieving our market penetration and growth objectives in the India market over the next several years," said Chad M. Utrup, Chief Financial Officer of Commercial Vehicle Group.
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. . In particular, this press release may contain forward-looking statements about Company expectations for future periods with respect to revenues, operating income, depreciation and amortization expense, earnings per share and the Company's financial position or other financial information. 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 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.