Aero Performance Products, Inc. Provides Additional Information on Planned Acquisition of Jones Exhaust Systems, Inc.
BLUFFDALE, Utah-(Business Wire)-January 15, 2009 - Aero Performance Products, Inc. (OTCBB: AERP), which operates Aero Exhaust, Inc., a world leader in performance exhaust airflow technology, today provided additional information on its planned acquisition of Jones Exhaust Systems, Inc., one of the most respected specialty exhaust manufacturers in the United States.
Aero Performance Products and Jones Exhaust have signed a definitive agreement, under which Aero will purchase all of the issued and outstanding shares of Jones Exhaust Systems, including its manufacturing and real estate assets.
“We are excited about the merger transaction between Aero and Jones Exhaust,” stated Bryan Hunsaker, CEO of Aero Performance Products. “It clearly provides a number of opportunities and advantages for both companies. The combined entities will be able to leverage their combined offshore purchases for additional cost savings. The overseas freight costs in 2008 were a tremendous drain on Aero’s profitability, and the combined orders will allow more efficient transportation. The reduced costs in both areas will not only allow for better profit margins, but will allow both companies to capture more of the market share through competitive pricing.”
“We anticipate that the combination of the two companies will produce improved top line performance through distribution optimization and product introductions, and significant bottom line growth from manufacturing and freight efficiencies, resulting in a profitable competitor in the exhaust industry with combined revenues approaching $10 million,” Mr. Hunsaker added.
Along with its standard manufacturing, Aero Performance Products intends to use the Jones Exhaust facility for domestic prototyping of new innovative products. The lack of a domestic prototype facility has hampered Aero’s efforts in the past to secure contracts in these areas. The opportunity will allow Aero and Jones Exhaust to expand their product offerings into alternative distribution channels, from OE to big box retail and non-automotive markets.
The combined entity intends to use the Tennessee-based Jones Exhaust sales personnel for U.S. distributors located in the South, Southeast, Midwest and East. Accounting, procurement and distribution functions will also primarily be handled from the Jones facility. The western states distributors will be managed from the Utah-based facility, which will also continue to be used as a western states distribution facility. The combined entity expects very little, if any, overlap of product offerings and will begin the task of integrating the product application data in the near term.
David Landreth, president and owner of Jones Exhaust Systems, will play a vital role in the merger of the combined entities. Along with his service on the Board of Directors, he will manage the implementation of the operations strategy and merger of the distribution relationships.
“I am pleased to play a role in the merger of these two companies, and look forward to seeing them make an even greater impact in the exhaust market,” stated Mr. Landreth.
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About Jones Exhaust Systems
Jones Exhaust Systems, founded in 1968, is one of the largest manufacturers of chrome exhaust tips and glasspack mufflers, and performance diesel systems in the U.S. The company offers many unique products available nowhere else in the industry, including the “Full Boar” V-Power performance muffler, which is the only muffler that utilizes flow deflector technology that is 100% reversible, the “Silver Vein” and “Black Vein” series of textured powder coated tips, and its “Midnight Pearl” dark shaded chrome tips. Jones Exhaust Systems also offers an extensive line of polished 304 stainless steel exhaust tips. In 2001, Jones Exhaust Systems, Inc. acquired Road Industries, Inc., a leading manufacturer of truck accessories. Road Industries, Inc. is recognized as the premier supplier of bed rails to the accessory market. In addition to bed rails, the company also produces utility racks. Full Boar Performance was acquired in 2003 to enhance Jones Exhaust Systems’ position as a leader in both aftermarket exhaust and the performance exhaust industry. This acquisition doubled the facilities and the company now manufactures an expanded line of specialty and performance exhaust products in 45,000 square foot of facilities with 70 employees.
About Aero Performance Products, Inc.
Aero Performance Products, Inc. (www.aeroperformanceproducts.com) operates Aero Exhaust, Inc., a world leader in performance exhaust airflow technology, manufacturing and distributing the most technologically advanced muffler on the market. Aero’s product lines are built to the highest industry standards and offer the consumer a lifetime warranty. Aero Exhaust has been issued U.S. and Australian patents on its innovations and development in the exhaust industry, and its mufflers are available worldwide through major retailers, mass merchant centers, automotive aftermarket supply stores and wholesalers. NASCAR legend Rusty Wallace is the official spokesperson for Aero Exhaust products. Additional information on Aero Exhaust’s products, race team, and motorsports ventures can be found on its corporate website, www.aeroexhaust.com.
Safe Harbor Statement: The statements in this release that relate to future plans, expectations, events, performance and the like are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including the lack of funding, inability to complete required SEC filings, and others set forth in the Company’s report on Form 10-K for fiscal year 2007 filed with the Securities and Exchange Commission.
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