Meridian Announces the Sale of Certain Operating Units of Their Composite Business

June 3, 2009

ALLEN PARK, Mich., June 3 /PRNewswire/ – Meridian Automotive Systems, Inc. (“Meridian”) announced today that they have reached an agreement with Decoma Composites LLC (“Decoma”), an operating unit of Decoma International Corp., whereby Decoma has, effective as of June 1, 2009, acquired elements of Meridian’s Composite business. Decoma has acquired, or assumed certain leases of, Meridian’s Composite business and facilities located in Lenoir, Newton and Salisbury, North Carolina and Celaya, Hermosillo, and Saltillo, Mexico. In addition, Decoma has assumed the lease of Meridian’s sheet molding compound facility in Grabill, Indiana. Terms of the transaction are not being disclosed.

Richard E. Newsted, Meridian’s President and CEO, said, “Meridian’s Composite operations are world-class, with high quality management and associates, with excellent customer relations primarily in the heavy truck and non-automotive markets. The decision to divest certain portions of our Composite business is another example of our continued focus on taking necessary actions to improve Meridian’s overall liquidity position in response to the severely depressed North American economic and automotive environment.”

About Meridian Automotive Systems, Inc.

Meridian is a leading supplier of technologically advanced front and rear end modules, exterior thermoplastics and composites and lighting systems to automobile and truck manufacturers and to the consumer and industrial products market. Meridian operates 12 facilities in the United States, Canada and Mexico. For more information visit www.meridianautosystems.com.

This news release contains forward-looking statements based on current assumptions and forecasts made by company’s management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future consolidated results, financial situation, development or performance of the company, and the estimates given here. The company assumes no liability to update such forward-looking statements or to adapt to future events or development.

SOURCE Meridian Automotive Systems, Inc.

Source: newswire

comments powered by Disqus