July 12, 2006 -- GenTek Inc., Parsippany, NJ, agreed to acquire the assets of Precision Engine Products Corp., a manufacturer of hydraulic lash adjusters and diecast aluminum rocker arm assemblies, from Stanadyne Corp., Windsor, CT.
Precision Engine's products are supplied to producers of valve-train systems for OEM and aftermarket applications in automotive and light-duty truck markets worldwide.
GenTek indicates hydraulic lash adjusters and rocker arm assemblies compliment products manufactured and marketed by its GT Technologies division, Westland, MI.
The purchase is valued at $25 million in cash, plus a working-capital adjustment and potentially a $10-million "earn out" for Stanadyne, 12 months after the transaction closes (based on post-closing performance measurements.)
Greg Gilbert, vice president and general manager of GT Technologies stated: "This transaction strengthens our market position with our present customer base by adding hydraulic lash adjusters and diecast aluminum rocker arm assemblies to our product portfolio, and accelerates our geographic reach into new customers and suppliers located in Europe, South America and Asia."
William E. Redmond Jr., GenTek's president and CEO stated: "We expect this transaction to be accretive to GenTek shareholders within a year following the closing. Moreover, this strategic investment in our valve-train business will further drive GenTek shareholder value creation through improved cash flows and operating efficiencies as well as strengthening our long term prospects in the automotive and light duty truck categories globally."
GenTek supplies specialty inorganic chemical products and services for treating water and wastewater, petroleum refining, personal-care products, valve-train systems, and components for automotive engines, and wire harnesses appliances and automotive parts.