Mercury Marine Acquires MCA

Mercury Marine
Acquires MCA
17 August 1998

Infoseek News Article: Delco Remy International, Inc. Divests its Marine Operations

Delco Remy International, Inc. Divests its Marine Operations

Press Release
Aug 17, 1998
ANDERSON, Ind., Aug. 17 -- Delco Remy International, Inc., announced today that it has sold certain assets of its Marine Corporation of America subsidiary based in Franklin, Indiana, to Mercury Marine, a division of Brunswick Corporation. Marine Corporation of America was a marinizer of diesel engines, supplying customers in North America, Europe and the Middle East.

Additionally, Delco Remy International, Inc. (DRI) has sold the assets of its Marine Drive Systems subsidiary located in Peru, Indiana, to International Marine Systems, LLC, in Indianapolis. Marine Drive Systems manufactured stern-drive propulsion systems for commercial and recreational watercraft and distributed them to customers worldwide.

DRI has decided to exit the marine engine and stern-drive business since they are not in the company's core business sectors. These divestitures will provide DRI with the opportunity to concentrate on its vehicle parts business. "Although we are a major remanufacturer of diesel engines, our focus is on light and heavy-duty truck applications. In the future, we do not expect to grow our business in the marine engine and drive market, but will continue to provide electrical products to the marine industry," stated Joe Felicelli, group vice president of Delco Remy International's Aftermarket Group.

Delco Remy International, Inc., became a public company with an initial public offering of stock in December, 1997. The company designs, manufactures and distributes electrical, powertrain/drivetrain and related components for automobiles and light trucks, medium and heavy duty trucks and other heavy duty vehicles. Products include starter motors, alternators, engines, transmissions, traction control systems and fuel systems.

Statements in this press announcement, which are not historical facts, are forward-looking statements that involve certain risks and uncertainties, including, but not limited to risks associated with the uncertainty of future financial results, acquisition, additional financing requirement, development of new products and services, the effect of competitive products or pricing, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

SOURCE  Delco Remy International, Inc.

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