Exhibit 99.2
news release [TENNECO AUTOMOTIVE LOGO]
Contacts: Jim Spangler Marc Harlow
Media Relations Media Relations
847 482-5810 313 567-5014
jspangler@tenneco.com mharlow@franco.com
Leslie Hunziker
Investor Relations
847 482-5042
lhunziker@tenneco.com
TENNECO AUTOMOTIVE ACQUIRES
BUSINESS OF EXHAUST SYSTEMS SUPPLIER TO HARLEY-DAVIDSON
Company Expands Presence in the Specialty Vehicle Market
Lake Forest, Illinois, February 2, 2005 - Tenneco Automotive (NYSE: TEN)
announced today that it has acquired substantially all the assets of Gabilan
Manufacturing, Inc., a privately held company that has developed and
manufactured motorcycle exhaust systems exclusively for Harley-Davidson
motorcycles since 1978.
Gabilan, which generated $38 million in revenues in 2004, is the exclusive
muffler manufacturer for all of Harley-Davidson's motorcycle families. Based in
Salinas, California, the company also produces aftermarket muffler kits solely
for Harley-Davidson. Tenneco Automotive has reached a long-term supply agreement
with Harley-Davidson to continue these relationships.
"We are very excited to add the Gabilan Manufacturing operations to the Tenneco
Automotive team," said Mark P. Frissora, chairman and chief executive officer,
Tenneco Automotive. "This acquisition is the first in our company's five-year
history and represents another execution of our consistent strategy to grow
through niche opportunities. We are looking forward to further aligning with
Harley-Davidson, a
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company that possesses one of the world's most recognized brands and an
incredible success story punctuated by 19 consecutive years of compounded annual
growth."
Tenneco Automotive purchased Gabilan's assets for $10 million in cash and
expects the acquisition to be accretive within the first year. The acquisition
is effective immediately.
As part of the acquisition agreement, Tenneco Automotive is acquiring nearly all
the assets of Gabilan Manufacturing. The company is not acquiring the Gabilan
name, Gabilan real estate at Salinas, California, its discontinued farm
equipment or other businesses or certain liabilities associated with the exhaust
business. Tenneco Automotive will lease the facility in Salinas and will assume
the current leasing agreements at the other Gabilan facilities.
The reputation of Gabilan's motorcycle exhaust business has been built on
quality and customer service. The business has about 240 employees, the majority
of which are located at Gabilan's headquarters and main manufacturing facility
in Salinas. The company also operates three other facilities in Lincoln, NE,
Milwaukee,WI and Emigsville, PA.
"We are very pleased with this announcement," said Matt Levatich, vice president
materials management, for Harley-Davidson. "The relationship we've had with
Gabilan will be further enhanced by Tenneco Automotive with the addition of its
broad engineering and manufacturing resources and advanced technology
capabilities."
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"We are confident there will be a seamless transition in terms of product
quality, delivery and service, as our focus will be on achieving 100 percent
total customer satisfaction for Harley-Davidson," Frissora said.
ABOUT TENNECO AUTOMOTIVE
Tenneco Automotive is a $4.2 billion manufacturing company with headquarters in
Lake Forest, Illinois and approximately 18,800 employees worldwide. Tenneco
Automotive is one of the world's largest producers and marketers of ride control
and exhaust systems and products, which are sold under the Monroe(R) and
Walker(R) global brand names. Among its products are Sensa-Trac(R) and Monroe(R)
Reflex(TM) shocks and struts, Rancho(R) shock absorbers, Gillet (TM), Walker(R),
Quiet-Flow(TM) mufflers and DynoMax(R) performance exhaust products, and
Monroe(R) Clevite(TM) vibration control components. Any other product names,
trademarks and registered trademarks are the properties of their respective
owners.
ABOUT GABILAN MANUFACTURING
Gabilan Manufacturing, Inc. develops and manufactures original equipment
motorcycle exhaust systems, primarily mufflers, exclusively for Harley-Davidson,
Inc., the world's leading heavy weight motorcycle company. The Salinas,
California company also produces motorcycle aftermarket muffler kits exclusively
for Harley-Davidson.
This press release contains forward-looking statements. Words such as "will",
"expects" and similar expressions identify forward-looking statements. These
forward-looking statements are based on the current expectations of the company
(including its subsidiaries). Because these forward-looking statements involve
risks and uncertainties, the company's plans, actions and actual results could
differ materially. Among the factors that could cause these plans, actions and
results to differ materially from current expectations are: (i) the general
political, economic and competitive conditions in markets and countries where
the company and its subsidiaries operate, including currency fluctuations and
other risks associated with operating in foreign countries; (ii) changes in
automotive manufacturers' production rates and their actual and forecasted
requirements for the company's products, including the company's resultant
inability to realize the sales represented by its awarded book of business;
(iii) changes in consumer demand and prices, including decreases in demand for
automobiles which include the company's products, and the potential negative
impact on the company's revenues and margins from such products; (iv) the cost
of compliance with changes in regulations, including environmental regulations;
(v) workforce factors such as strikes or labor interruptions; (vi) material
substitutions and increases in the costs of raw materials; (vii) the company's
ability to develop and profitably commercialize new products and technologies,
and the acceptance of such new products and technologies by the company's
customers; and (xviii) the timing and occurrence (or non-occurrence) of
transactions and events which may be subject to circumstances beyond the control
of the company and its subsidiaries. The company undertakes no obligation to
update any forward-looking statement to reflect events or circumstances after
the date of this press release.
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