Metaldyne Signs Agreement to Divest GLO to SKF

PLYMOUTH, Mich., Sept. 2 /PRNewswire/ -- Metaldyne Corporation, an Asahi
Tec company, today announced it has entered into an agreement to divest its
GLO S.r.L. operation in Poggio Rusco, Italy, to AB SKF of Goteborg, Sweden.
The decision to divest this operation is another step in Metaldyne's Plan
to Win, which is aimed at creating value for the company's stakeholders. Under
the Plan, Metaldyne has streamlined its cost structure, focused its capital
expenditures and intensified its product line focus, all to improve
performance.
"One of the major initiatives of the Plan to Win is to concentrate on our
core products," said Thomas A. Amato, chairman and CEO of Metaldyne and co-CEO
of Asahi Tec. "We are pleased to see this transaction come together where
ultimately GLO will become part of the SKF family of businesses."
GLO designs, develops and produces constant velocity joints for the
aftermarket and OEM automotive industry. The SKF Group is one of the leading
global suppliers of products, solutions and services in the area comprising
rolling bearings, seals, mechatronics, services and lubrication systems. It is
acquiring GLO to broaden the existing product range and to strengthen its
presence in the European vehicle aftermarket segment.
"GLO is one of the leading manufacturers in the European automotive
aftermarket and has a broad range of products well suited for this market,"
said Lars Wilsby, head of SKF Global Automotive Aftermarket Operations. "Its
commitment to delivering quality products on-time to its customers is a great
fit with SKF. We see excellent growth potential for this operation."
The acquisition is subject to certain conditions to closing and requires
approvals by relevant authorities.
GLO is an indirect wholly-owned subsidiary of Metaldyne Corporation that
began production of constant velocity joints in 1978 and was acquired by
MascoTech in 1988 before becoming part of Metaldyne in 2000.
Proceeds from the sale will be used to pay down debt or for general
funding purposes.
About Metaldyne
Metaldyne is a wholly owned subsidiary of Asahi Tec, a Shizuoka,
Japan-based chassis and powertrain component supplier in the passenger
car/light truck and medium/heavy truck segments. Asahi Tec is listed on the
Tokyo Stock Exchange.
Metaldyne is a leading global designer and supplier of metal based
components, assemblies and modules for transportation related powertrain and
chassis applications including engine, transmission/transfer case, wheel end
and suspension, axle and driveline, and noise and vibration control products
to the motor vehicle industry.
Headquartered in Plymouth, Mich., Metaldyne has annual revenues of
approximately $1.8 billion. The company employs more than 6,300 employees at
33 facilities in 14 countries.
Forward Looking Statements
This press release contains statements that are not statements of
historical fact, but instead are forward-looking statements, as that term is
defined by the federal securities laws. We caution readers not to place undue
reliance on these forward-looking statements, which reflect management's
expectations, estimates and assumptions based on information available as of
the date hereof. Important factors that could cause actual results,
performance or achievements to vary materially from those expressed or implied
by the forward-looking statements are set forth in our Annual Report on the
Equivalent of Form 10-K for the fiscal year ended March 31, 2008 and our
subsequent Quarterly Reports, and include: our high degree of leverage;
substantial restrictions in our credit facilities and other debt;
consolidation or declining financial condition of our customers; adequacy of
our liquidity; seasonal fluctuations in our business; inability to meet future
capital requirements; our industry's cyclicality and highly competitive
nature; inability to lower costs and obtain favorable contracts to offset the
industry model of declining component prices over time; inability to expand
into new product lines; inability to achieve profitability given our recent
net losses; availability and affordability of raw materials; changing
technology could place us at a competitive disadvantage; inability to
establish manufacturing capabilities in lower-cost areas; inability to quickly
replace any diminished or lost business due to the length of the sales
process; lack of binding purchase commitments from customers; costs
potentially exceeding estimates used in pricing our products; higher research
and development costs may not be recouped; business alliances may not produce
satisfactory results; customer consolidation resulting in increased difficulty
to compete; our employee benefit obligations may negatively impact future
liquidity; inability to protect our intellectual property rights;
environmental compliance obligations and liabilities; risks related to
international sales; inability to meet obligations for any product liability
and warranty claims; labor stoppages at our facilities or those of our
customers; failure of anticipated outsourcing due to union considerations; and
dependence on key personnel and relationships. We do not intend or assume any
obligation to update any of these forward-looking statements.
For more information, please visit www.metaldyne.com .
SOURCE Metaldyne

Marge Sorge of Metaldyne, +1-734-578-6507