Core Industries Inc
500 North Woodward
P. O. Box 2000
Bloomfield Hills, MI 48303-2000
Telephone: (248) 642-3400
FAX: (248) 642-6816
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact: Mark J. MacGuidwin
May 8, 1997 Telephone: (248) 901-1575
E-mail: macguid@core-ind.com
CORE INDUSTRIES ACQUIRES GAGE BUSINESS
Core Industries Inc (NYSE: CRI) today announced that it has acquired
substantially all of the assets of Air Gage Company, a privately held producer
of gaging products and systems. Air Gage, located in Livonia, Michigan, has
annual sales in excess of $30 million. It complements Core Industries' position
in the test, measurement and control industry, especially Core's GSE, Inc.
subsidiary. The business was purchased for cash of approximately $18 million.
Core's management expects the acquisition to be immediately accretive to
earnings per share.
Air Gage manufactures an extensive line of air, electronic, and computerized
gaging and inspection systems that are used primarily in the manufacture of
automotive vehicles and parts. The company is the world's second largest
manufacturer of these types of gaging systems and is a preferred supplier to
several vehicle manufacturers. Air Gage will continue to operate with its
current management and with Dominic Persichini, the founder of Air Gage
remaining as President of Air Gage.
Lawrence J. Murphy, Core's Executive Vice President responsible for
acquisitions, said "The acquisition of Air Gage represents a significant step in
our strategic plan to grow Core Industries, especially in our Test, Measurement
and Control segment. Air Gage will allow Core to leverage GSE's strong position
in advanced assembly markets with Air Gage's strong Tier 1 status. It
strengthens our ability to deliver greater integrated high tech solutions for
vehicle and component assembly applications. Air Gage also brings significant
machining capacity and capabilities to Core Industries. We also are delighted to
have Dominic Persichini and his fine management team join the Core Industries
family."
Mr. Murphy added, "Air Gage's position as a world class supplier of both
standard and customized gages and services makes it an excellent addition to
Core. We were attracted to Air Gage because of its outstanding reputation, its
devotion to world class quality standards, its dynamic management team, and the
opportunities to leverage its position with that of our GSE business which is
dramatically growing its advanced assembly solutions capabilities beyond merely
tool supply."
Core Industries Inc manufactures specialty products in three segments: Fluid
Controls and Construction Products; Test, Measurement and Control; and Farm
Equipment.
Core's Internet address is http://www.core-ind.com