The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

TecSyn International Inc. and Exco Technologies Limited -- Announcement

16 June 2000

TecSyn International Inc. and Exco Technologies Limited -- Announcement

    TORONTO - Exco Technologies Limited and TecSyn International Inc. today announced that their respective boards have approved a proposed transaction under which Exco would acquire all the outstanding common shares of TecSyn.

    The proposed transaction is to be implemented by an amalgamation between TecSyn and Exco Acquisition Limited, a wholly owned subsidiary of Exco, for a cash price of $2.70 per TecSyn share.

    An Independent Committee of the Board of Directors of TecSyn has reviewed the transaction and has retained PricewaterhouseCoopers LLP to prepare an independent valuation of TecSyn which concluded that the value of TecSyn shares was in the range of $2.53 to $2.92 per share. Based on the recommendation of the Independent Committee, the Board of Directors of TecSyn has determined to support the transaction and to recommend to the shareholders of TecSyn that they vote in favour of the amalgamation. TecSyn has entered into a support agreement with Exco with respect to the proposed transaction under which TecSyn has agreed not to solicit competing offers and to pay a break fee in certain circumstances. TecSyn has retained the right to respond to unsolicited superior offers.

    Completion of the transaction is conditional on satisfaction of certain conditions including approval by the shareholders of TecSyn and receipt of any necessary governmental and other regulatory approvals. It is expected that a meeting of TecSyn shareholders will be held in mid-August to consider the transaction.

    TecSyn is the leading global supplier of automotive restraint and convenience netting products. TecSyn is also a manufacturer of advanced powdered metal cylinder liners utilizing TecSyn's proprietary cold isostatic compaction technology. Exco produces precision-engineered tooling primarily for automotive and industrial markets.

    Mr. Brian Robbins, the President of Exco, stated, "Exco believes that TecSyn will add an exciting element to its existing automotive business." Exco intends to finance the purchase price of approximately $48.6 million through a combination of existing cash resources and Exco's operating lines.