Dorman Products, Inc. Announces Sale of Product Line and Joint Venture With Eastern Manufacturing, Inc.
COLMAR, PA--(Marketwire - May 15, 2008) - Dorman Products, Inc. (NASDAQ: DORM) ("Dorman")
today announced that it has sold the assets of its catalytic converter
business to Eastern Manufacturing, Inc. ("Eastern Catalytic") and entered
into a joint venture agreement with Eastern Catalytic to mutually develop,
manufacture and distribute an integrated exhaust manifold and converter
Total proceeds from the sale are expected to approximate the book value of
these assets in Dorman's financial statements. Dorman expects to record
severance and shutdown expenses of approximately $0.3 million as a result
of the sale.
Under the terms of the joint venture agreement, Dorman and Eastern
Catalytic will co-develop and market an industry-leading line of integrated
exhaust manifold and catalytic converters for the traditional, retail and
export automotive channels. In addition, the arrangement will enable
Dorman to offer Eastern Catalytic's full line of direct fit catalytic
converters to the automotive aftermarket.
Dorman will continue to maintain its Canadian distribution facility for its
Dorman-branded line of automotive aftermarket products.
Mr. Steven Berman, President of Dorman, said, "The Eastern Catalytic joint
venture agreement will enable us to work together with a strong
manufacturing partner so that together we can accelerate the introduction
of a broader line of integrated exhaust manifolds and catalytic converters
to the aftermarket. We also look forward to adding Eastern Catalytic's
full line of direct fit converters to our product portfolio. We believe
our Canadian distribution center for Dorman branded product will continue
to grow as a result of the substantial new product growth scheduled for our
OE Solutions line."
Dorman Products, Inc. is a leading supplier of OE Dealer Exclusive
automotive replacement parts, automotive hardware, brake products, and
household hardware to the Automotive Aftermarket and Mass Merchandise
markets. Dorman products are marketed under the OE Solutions™,
HELP!®, AutoGrade™, First Stop™, Conduct-Tite®, Symmetry® and
Scan-Tech® brand names.
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
those projected. Readers are cautioned not to place undue reliance on
these forward-looking statements which speak only as of the date hereof.
Factors that could cause actual results to differ materially include, but
are not limited to, those factors discussed in the Company's 2007 Annual
Report on Form 10-K under Item 1A - Risk Factors.
Contact Information: For Further Information Contact:
Mathias J. Barton
(215) 997-1800 x 5132
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