"The acquisition of Fasco is a key step in revitalizing the growth of Tecumseh Products Company and is a good strategic fit with the company's mission of designing and manufacturing products that improve the human condition," stated Todd Herrick, CEO.
Fasco manufactures AC motors, DC motors, blowers, gear motors, and linear actuators. Its products are used in a variety of applications within the HVAC, automotive, healthcare, and appliance industries, among others. Sales for the year ended March 31, 2002 were approximately $480 million. Fasco has 13 manufacturing facilities worldwide, including eight in the United States, two in Mexico, and one each in Canada, Thailand, and Australia, employing approximately 5,200 people.
"In addition to delivering increased value to our shareholders, the addition of Fasco will allow Tecumseh to reach new customers and markets and give us the opportunity to deliver higher value-added products and complete customer solutions in all our business segments," stated Dave Kay, CFO.
Fasco, along with certain existing hermetic motor and electronics operations, will form a new Electrical Components business segment of Tecumseh Products. The Fasco business will continue to operate as a single business unit, and no manpower reductions are contemplated as a result of the combination.
The purchase price of $415 million is subject to certain adjustments, and is to be funded from available cash and new borrowings. The closing of the transaction is subject to regulatory approvals in the U.S. and abroad.
Publication date: 12/02/2002