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PRESS RELEASE
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FOR IMMEDIATE RELEASE: CONTACT:
CompX International Inc. John A. Miller
16825 Northchase Drive Chief Financial Officer
Houston, Texas 77060 Tel. 281-423-3391
COMPX AGREES TO ACQUIRE CHICAGO LOCK
HOUSTON, TEXAS . . . November 19, 1999 . . . CompX International Inc.
(NYSE: CIX) announced that it has signed a definitive agreement to acquire the
business of Chicago Lock Company ("Chicago Lock") for $9.5 million in cash,
subject to certain price adjustments. Chicago Lock produces locks for vending,
office furniture and other industries. The purchase price includes substantially
all of Chicago Lock's operating assets excluding real estate.
Founded in 1920, Chicago Lock manufactures the Ace brand tubular key lock,
which has been used in the vending industry for decades. In addition, its Tubar
System has a significant position in the higher security vending market. Chicago
Lock's products and customer base are complementary to those of CompX's existing
National Cabinet Lock, Fort Lock and Timberline Lock product lines. Chicago
Lock's annual sales have averaged approximately $20.0 million for the last two
fiscal years.
Joseph S. Compofelice, Chairman and CEO of CompX, stated "This acquisition
allows us to further expand and diversify the customer base of our security
products business. We have experienced strong growth in 1999 in our existing
security products business and Chicago Lock expands our ability to continue that
growth. We expect significant opportunities for cost savings and operational
improvements by leveraging our existing infrastructure and automation skills."
The transaction is scheduled to close in early January and will be financed
with cash on hand and by borrowings under the company's existing credit
facility.
CompX is a leading manufacturer of ergonomic computer support systems,
precision ball bearing slides and security products.
Statements in this release relating to matters that are not historical
facts are forward-looking statements based on management's belief and
assumptions using currently available information. Although the Company believes
the expectations reflected in such forward-looking statements are reasonable, it
cannot give any assurances that these expectations will prove to be correct.
Such statements, by their nature, involve a number of risks and uncertainties
that could significantly impact expected results, and actual future results
could differ materially from those described in such forward-looking statements.
Among the factors that could cause actual future results to differ materially
include, but are not limited to, general economic and political conditions,
demand for office furniture, service industry employment levels, competitive
products and prices, the introduction of tariff or non-tariff trade barriers,
potential difficulties in integrating completed acquisitions, possible
disruptions of normal business activity from Year 2000 issues and other risks
and uncertainties detailed in the Company's Security and Exchange Commission
filings. Should one or more of these risks materialize (or the consequences of
such a development worsen), or should the underlying assumptions prove
incorrect, actual results could differ materially from those forecast or
expected. The Company disclaims any duty to publicly update such statements
whether as a result of new information, future events or otherwise.
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