Commercial Vehicle Group Announces Acquisition of Mayflower Vehicle Systems North American Operations
NEW ALBANY, OH — Commercial Vehicle Group, Inc. (CVG), announced on February 7 that it has acquired substantially all of the assets and liabilities related to Mayflower Vehicle Systems North American Commercial Vehicle Operations (MVS) for cash consideration of $107.5 million.MVS is the only non-captive producer of complete truck cabs for the commercial vehicle sector with full-service engineering and development capabilities. Products include cab frames and assemblies, sleeper boxes, and other structural components. Major customers include International, Volvo/Mack, and Freightliner. MVS has operations in Norwalk and Shadyside, Ohio, and Kings Mountain, N.C., and has a technical facility in the Detroit area.For the year ended December 31, 2004, MVS recorded revenues of approximately $207 million and earnings before interest, taxes, depreciation, and amortization of approximately $25 million. CVG estimates that the future tax benefits related to the deductibility of goodwill and intangible asset amortization to have an estimated present value of $12 million.Financing for the acquisition consisted of an increase and amendment to CVG's existing credit facility. The company said it expects the acquisition to be accretive to earnings and provide positive economic value in the first year.Mervin Dunn, CVG's president and chief executive officer said, "This transaction provides several strategic advantages to CVG. It provides CVG the opportunity to be the only supplier worldwide to offer complete cab systems in sequence, integrating interior trim and seats with the cab structure. MVS also has the same customer base and buying group as CVG which will provide strategic cross-selling opportunities for all product categories."