13 March 1999
Mark IV Industries, Inc. announced that it has signed a definitive purchase agreement to acquire Lombardini FIM S.p.A., an Italian based company, that is a leading European manufacturer of small diesel engines with manufacturing plants in Italy, France, and Spain, and sales and distribution offices throughout Europe and North America. The transaction is expected to close by 9 April 1999.
Lombardini, headquartered in Reggio Emilia, Italy, employs 1,250 people, and has more than 60 years experience in developing both small diesel and gasoline engine technology and is the leading producer of small diesel engines of up to 50kw (65 horsepower) in Europe with sales of $201 million in its latest fiscal year ended 31 December 1998.
Mark IV will pay a total purchase price of $148 million consisting of $42 million cash and the assumption of $106 million of existing debt. Existing funds and available multi-currency credit facilities will be used to finance the purchase.
Mark IV will operate Lombardini as a part of its automotive division, forming the basis of a new business unit to develop and market power pac modules consisting of a diesel engine integrated with a continuous variable transmission (CVT) currently under development by the Company.
Sal H. Alfiero, Mark IV's chairman and chief executive officer, said, "In a growing number of cities, vehicle congestion has caused increasing problems with traffic, parking, emissions, noise and other environmental issues. As a result, laws are being changed to restrict city traffic in many countries. Consequently, in Europe, as well as on other continents, the "City Car/City Van" (specially designed, ultra compact, economical and environmentally friendly vehicles) market is emerging as a rapidly growing segment in a mature automotive market. In the near term, it is estimated that City Cars/City Vans could account for 5-15% of Europe’s annual vehicle production.
"Mark IV Automotive is forming a dedicated business unit to serve this market with it’s "Power Pac" line of products—a complete module with engine and CVT for use in City Cars and Vans. The company’s Power Pac will reduce emissions, fuel consumption, vibration, noise and weight, and will be available in a variety of sizes in order to satisfy various vehicular requirements.
Mark IV Industries, Inc. is a $2.2 billion global manufacturing company headquartered in Amherst, New York, employing 16,000 people worldwide. The company's core technologies include power transmission, fluid transfer and specialty filtration systems and components for global industrial and automotive markets.
Source: Mark IV