Commercial Vehicle Group Acquires Assets of Short Bark Industries, LLC

Dec 05, 2007, 00:00 ET from Commercial Vehicle Group, Inc.

    NEW ALBANY, Ohio, Dec. 5 /PRNewswire-FirstCall/ -- Commercial Vehicle
 Group, Inc. (Nasdaq:   CVGI) announced today that it has acquired certain
 assets from Short Bark Industries, LLC ("SBI"), a supplier of seat covers
 and various cut-and-sew trim products.
 
     In exchange for the commercial vehicle cut-and-sew assets and
 operations acquired from SBI, CVG paid approximately $3.6 million in cash
 and has assumed approximately $1.9 million of net liabilities due to third
 parties and $1.3 million of net liabilities due to CVG.
 
     Included in the transaction are two leased facilities in Tellico Plains
 and Pikeville, Tennessee, which CVG management will assume responsibility
 for, effective immediately. The two leased facilities employ approximately
 200 associates and are located near CVG's seating operation in Vonore,
 Tennessee. CVG also has a ninety-day option to assume the shares, assets or
 operations of SBI's leased facility in Capilla de Guadalupe, Jalisco,
 Mexico, at no additional purchase price consideration. There are
 approximately 14 associates employed at the Mexico facility.
 
     Lisa Held Janke, owner and Chief Executive Officer of SBI, will retain
 Short Bark's military division and continue to focus on the military
 apparel business.
 
     Jerry Armstrong, President of Commercial Vehicle Group's Global Truck
 Division, stated, "This acquisition is a great fit with CVG's operations as
 it provides us with a platform for a cut-and-sew center of excellence and
 an uninterrupted supply of seat covers and trim materials. SBI, which
 originated in the highly-competitive textile environment, is skilled at
 removing waste in the cutting operation and gaining productivity in the
 sewing process."
 
     CVG estimates the transaction to be neutral to the Company's diluted
 EPS for the remainder of 2007 and accretive by approximately $0.02 per
 diluted share for the full year 2008.
 
     "In addition to the strategic and logistical advantages, this
 transaction provides us with a margin enhancement opportunity," said Chad
 M. Utrup, Chief Financial Officer of Commercial Vehicle Group. "Because
 nearly all of the cut-and-sew products from the acquisition will be
 supplied directly to our existing operations, our top line revenue is not
 expected to increase; however, we will realize bottom line margin
 improvement from the profitability and productivity of the operations,"
 added Utrup.
 
     For the period of December 5, 2007 to December 31, 2007, the Company
 does not expect any change to its previous estimates as a result of the
 transaction. For the full year 2008, the Company does not anticipate an
 increase in revenues and expects operating income in the range of $1.3
 million and depreciation in the range of $0.2 million as a result of this
 transaction.
 
     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 .
 
     Forward-Looking Statements
 
     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. 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 this or 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.