Auto Service World
News   September 16, 2002   by Auto Service World

Lund Sells Smittybilt and Trailmaster to Management Run Group


Lund International Holdings, Inc. announces the sale of its discontinued businesses to Smittybilt Automotive Group, Inc., effective September 12, 2002.
On October 2, 2001, Lund International announced its intention to divest its Smittybilt, Inc. tubular steel business and its Trailmaster Products, Inc. suspension accessories business. Both businesses have been located in the same facility in Corona, Calif. Houlihan Lokey Howard & Zukin Capital was retained in the fall of 2001 to represent the Company in the divestiture.
The majority of Smittybilt’s and Trailmaster’s employees, including senior management, are expected to be retained. Smittybilt Automotive Group, Inc. will be led by president and CEO Dean Lueck and executive vice-president Jim Chick. Lueck was formerly president and CEO of Steelhorse Automotive and Chick formerly held the position of president at Trailmaster Products, Inc.
The company elected to pursue the sale with Smittybilt Automotive Group, Inc. over other offers in part because existing management will be involved in the new business.
The company anticipates that the new ownership and experienced management will lead to a seamless supply of Smittybilt and Trailmaster branded products to customers. Lund International will report the full impact of the sale in its next quarterly report. The company expects that the net results of the sale will not materially affect the company’s financial condition. Previously, the company had reported losses from these discontinued businesses of $33,980,000 U.S. in 2001 and $1,873,000 U.S. through June 30 for 2002.


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