Aug 10 2005
Commercial Vehicle Group, Inc. has announced that it acquired all of the outstanding common stock of Cabarrus Plastics, Inc. ("CPI").
CPI, which had 2004 revenues of approximately $13 million, is located in Concord, North Carolina and is a manufacturer of custom injection molded products primarily for the recreational vehicle market. The aggregate purchase price was $12.1 million and was financed with cash on hand.
"This acquisition represents a continued investment in processing technology for custom injection molded products," said Mervin Dunn, CVG's president and chief executive officer. "With its high quality and existing capacity, CPI is an important element in our strategy to expand our injection molding capabilities into our existing customer base. Our customers have recognized our intent to grow the hard plastics portion of our business and have awarded new business that will be produced at CPI next year."
The acquisition of CPI will be neutral to CVG's earnings per share for the remainder of 2005. CPI expects revenues to be in the range of $16 million for the full year 2005 and approximately $6 million for the remainder of the year. In addition, operating income and depreciation are expected to be approximately $0.4 million and $0.3 million, respectively, for the remainder of the year.
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