08 July 2005
08 July 2005
Core Molding Technologies has signed a Letter of Intent to acquire certain assets of the Cincinnati Fiberglass Division (CFG) of Diversified Glass Inc., manufacturer of FRP components supplied to the heavy-duty truck market.
Core has also signed a Letter of Intent to enter into a supply and management agreement with CFG's major customer, under which Core will acquire certain assets and will support the supply requirements for products currently produced by CFG.
""We believe the acquisition of the certain CFG assets and the supply and management agreement with its major customer will represent an excellent opportunity for Core,"" said James L. Simonton, president and chief executive officer. ""These agreements align with our revenue growth strategy and the expansion of an important existing customer relationship within the heavy-duty truck industry. The CFG operation also provides Core with greater geographical reach, additional moulding capacity and expanded process diversification with their open moulding and multiple insert tooling (MIT) resin transfer moulding processes.""
Simonton said the Company will not incur any new long-term debt in regards to the acquisition of these assets. The company declined to disclose the purchase price, but noted that CFG's fiscal year 2004 annual sales were approximately $16 million, primarily in the heavy-duty truck market. As per the Letter of Intent with CFG, Core expects to enter an agreement to lease and operate CFG's current 100,000 sq. ft. facility upon completing the acquisition.
Headquartered in Ohio, Core Moulding Technologies, Inc. is a compounder of sheet moulding composites (SMC) and moulder of fibreglass reinforced plastics.