POMONA, Calif., August 26, 2003 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today announced it has acquired Kansas Bumper and Body Parts and Mo-Kan Auto Body Supply, two privately held companies based in Topeka, Kansas and Kansas City, Missouri, respectively, with combined sales of approximately $8.0 million for the most recent fiscal year. Terms were not disclosed.
Kansas Bumper operates two aftermarket parts distribution centers located in Topeka and Wichita, Kansas, and three automotive paint stores in Lawrence, Manhattan and Liberal, Kansas. Mo-Kan Auto Body Supply operates one automotive aftermarket parts distribution center in Kansas City, Missouri.
"The acquisitions complement Keystone's existing capabilities in the Kansas City areas of Missouri and Kansas, while adding significant geographic expansion in the state of Kansas," said Charles J. Hogarty, president and chief executive officer of Keystone.
Hogarty stated that both Kansas Bumper and Mo-Kan have well run businesses with strong management.
He added that Keystone plans to consolidate its existing facility in Kansas City, Missouri, with the operations of Mo-Kan Auto Body Supply. The company expects to incur a one-time consolidation charge of approximately $500,000 in the second quarter of fiscal 2004, which includes future lease costs and moving and related expenses for the Mo-Kan transaction -- as well as legal expenses related to the previously announced MultiPro Auto Body Parts, Inc. acquisition.
Separately, the company said that it has opened a new greenfield operation in Fort Worth, Texas, extending distribution from its existing facility in the Dallas metropolitan area. The company also said it has converted a depot operation into a full-service distribution facility in Erie, Pennsylvania.
About Keystone
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 124 distribution facilities, of which 22 serve as regional hubs, located in 39 states, Canada and Tijuana, Mexico. Its product lines consist of automotive body parts, bumpers, and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle. These products comprise more than 19,000 stock keeping units that are sold to more than 25,000 repair shops throughout the nation.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company's current expectations and beliefs concerning future developments and their potential effects on the company. There can be no assurance that future developments affecting the company will be those anticipated by the company. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors, including but not limited to the impact on the company as a result of (i) the cost, time and potential disruption of operations relating to the implementation of a new enterprise management information system which began in July 2002; (ii) the continuing impact of the verdict in the State Farm Mutual Automobile Insurance Company class action, which is on appeal; (iii) Keystone being named as defendant in an action by General Motors challenging the alleged use of certain of its trade marks; and (iv) the uncertainty involved in acquiring businesses and/or opening Greenfield operations. In addition, there can be no assurance that the momentum in sales and net income experienced during the last two years will be sustainable. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. For a more detailed discussion of some of the ongoing risks and uncertainties of the Company's business, see the Company's Form 10-K for the year ended March 28, 2003, on file with the Securities and Exchange Commission.