EXHIBIT 99.2
FOR IMMEDIATE RELEASE
Gulfstream Contact: Kimberly-Clark Contact:
Tricia Bergeron Wendi Strong
(912) 965-3700 (972) 281-1481
GULFSTREAM AEROSPACE TO ACQUIRE K-C AVIATION FROM
KIMBERLY-CLARK FOR $250 MILLION IN CASH
Will Significantly Increase Gulfstream's Capacity In Completions And Service;
Acquisition Also Expected To Be Accretive To Gulfstream's EPS In First Year
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SAVANNAH, GA, and DALLAS, TX, July 24, 1998 - - Gulfstream Aerospace
Corporation (NYSE: GAC) and Kimberly-Clark Corporation (NYSE: KMB) today
announced they have signed a definitive agreement for Gulfstream to acquire
K-C Aviation, a leading provider of business aviation services, from
Kimberly-Clark for $250 million in cash.
K-C Aviation is the largest independent completion center for
corporate aircraft in North America, with annual revenues of approximately
$200 million. Specializing in custom work, it also has extensive
refurbishment and maintenance operations focused on the high-end of the
corporate aviation market. K-C Aviation has a superb reputation for quality
and craftsmanship, and has been named "Best Completion Center" for the last
five years by Professional Pilot magazine.
Gulfstream said the acquisition will substantially increase its
aircraft completion capacity, support its rapidly growing service business,
and give it strong refurbishment capabilities. K-C Aviation's facilities in
Texas, Wisconsin, and Massachusetts will also complement Gulfstream's
current facilities in Georgia and California to give the Company a
nationwide network, increasing convenience and response capability for
customers.
The transaction is subject to regulatory approvals and is expected to
be completed in the third quarter. Gulfstream expects the acquisition to be
accretive to earnings per share beginning in the first full year of
operations. It will be funded from Gulfstream's cash on hand.
"Like Gulfstream, K-C Aviation is simply the best in its business, and
it shares our dedication to unmatched quality and service," said Gulfstream
Chairman Theodore J. Forstmann. "We have ramped up production to 64 planes
for 1999 to meet growing customer demand for both Gulfstream IVs and
Gulfstream Vs, and now we are making a major investment in increased
completion and service capacity. Gulfstream will now have 18 additional
completion slots in 1999 which will help us work through existing backlog
faster -- and we will also be able to deliver aircraft sooner to people
placing new orders today."
"K-C Aviation is a great company, and the decision to sell it was a
difficult one," said Wayne Sanders, chairman and chief executive officer of
Kimberly-Clark. "With an objective of focusing on our core consumer
products business, we determined that the best course of action for the
future of K-C Aviation and its employees was to align the company with a
corporation whose core business is aviation. It was very important to
Kimberly-Clark to find a company that will continue K-C Aviation's
philosophy of perfection, value and quality, the concepts upon which the
company was built. We believe Gulfstream has the same philosophy and is the
ideal buyer for this business. This is a big growth opportunity for the
company and for K-C Aviation's employees who have worked hard to make it
the number one independent aviation services provider in the world."
Jim Johnson, president and chief operating officer of Gulfstream,
said, "We welcome the talented team at K-C Aviation to Gulfstream. We
expect no significant changes in K-C Aviation's management or work force,
and will begin business operations and integration under the Gulfstream
name immediately upon closing. In addition to enhanced completion
capabilities, this acquisition will give us more capacity to keep
increasing our share of the service business for the worldwide fleet of
corporate aircraft. We will be able to reduce maintenance downtime for
Gulfstream customers and increase flexibility in scheduling. We are also
committed to maintaining K-C Aviation's specialized maintenance teams that
now service other types of aircraft and provide maintenance for a wide
variety of engines and auxiliary power units." John Rahilly, president of
K-C Aviation, will report to Johnson.
Founded in 1958, Gulfstream Aerospace Corporation is the leading
designer, developer, manufacturer and marketer of the world's most
technologically advanced intercontinental business jet aircraft. Gulfstream
has produced more than 1,000 aircraft for customers around the world. The
Company offers a range of aircraft products and services to meet the needs
of its customers, including the Gulfstream IV-SP(R), the ultra-long range
Gulfstream V(R), Gulfstream Shares(R) (fractional ownership interests),
Gulfstream Financial Services, Gulfstream Pre-Owned Aircraft Sales,
Gulfstream Charter ServicesSM and Gulfstream Management ServicesSM.
K-C Aviation has been in business for 30 years and has facilities in
Dallas, Texas; Appleton, Wis.; and Westfield, Mass. Its services include
completions and refurbishments, as well as airframe, avionics, and engine
maintenance.
Kimberly-Clark Corporation is a leading global manufacturer of
personal care, consumer tissue and away-from-home products. The company
also is a major producer of professional healthcare products and premium
business, correspondence and technical papers. The company has
manufacturing operations in 38 countries and sells its products in 150
countries.
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This press release includes forward-looking statements, including statements
regarding future earnings and production of Gulfstream and the impact of the
acquisition of K-C Aviation, Inc. These forward-looking statements are subject
to risks and uncertainties. Actual results might differ materially from those
projected in the forward-looking statements. Additional information concerning
factors that could cause actual results to materially differ from those in the
forward-looking statements is contained in the Company's Securities and
Exchange Commission filings.