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EXHIBIT 99.2
[GENCORP-LOGO]
Rosemary B. Younts
Sr. VP, Communications
(916) 351-8650
(916) 804-7820
NEWS RELEASE
Terry Hall
Sr. VP, CFO
(202)828-6800
FOR IMMEDIATE RELEASE
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GENCORP REPORTS ADDITIONAL DETAILS ON FINANCIAL
BENEFITS OF DRAFTEX AQUISITION
SACRAMENTO, CA, OCTOBER 23, 2000 - Following its announcement late
yesterday of an agreement to purchase The Laird Group's International Car Body
Seals Division, Draftex, GenCorp today reported additional details on the
financial benefits of acquiring this global automotive sealing supplier.
Draftex will bring GenCorp about $415 million in global automotive
sealing sales. The Company expects Draftex operating margins to be similar to
current margins of about 6.5% at its Vehicle Sealing segment. GenCorp also
expects the acquisition, including related cost synergies, to be accretive by at
least $0.09 per share in 2001.
The Company also stated that the agreement to acquire Draftex is on a
debt free basis. At closing, $188 million (Euro 244 million) is payable, with
the final price subject to certain post-closing adjustments. The final price
will represent a multiple of approximately four times (4x) expected 2001 EBITDA
(Earnings Before Interest, Taxes, Depreciation and Amortization). The purchase
will be financed with new debt.
The acquired business will report to Joseph Gray, GenCorp Vice
President and President of GenCorp Vehicle Sealing. "We are very excited to add
Draftex, with its complementary customer and platform bases, global capabilities
and relationships, and outstanding people and technologies, to GenCorp Vehicle
Sealing," Gray said. "Among the numerous benefits Draftex offers, the
acquisition will also enable us to realize important cost synergies, including
the ability to rationalize production capability on both continents," he said.
GenCorp Vehicle Sealing also expects to take advantage of cost savings through
management consolidation prior to year-end.
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GenCorp was advised on the transaction by Deutsche Bank and Simmons &
Simmons.
GenCorp is a technology-based manufacturer with leading positions in
the aerospace and defense, pharmaceutical fine chemicals and automotive
industries. For more information, visit the Company's web site at
http://www.GenCorp.com.
