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EXHIBIT 99
GENCORP
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
GENCORP COMPLETES DRAFTEX INTERNATIONAL ACQUISITION,
CREATING LARGEST NORTH AMERICAN AUTOMOTIVE SEALING SUPPLIER
FARMINGTON HILLS, MICHIGAN, December 29, 2000 - GenCorp (NYSE: GY)
announced today the completion of the acquisition of Draftex International Car
Body Seals, creating the world's second largest automotive sealing supplier and
the largest North American supplier of highly engineered vehicle sealing systems
with nearly one-third of North American sales.
The purchase price was approximately $198 million, and includes the
Draftex Worldwide Headquarters and International European Technical Center in
Dusseldorf, Germany, and 11 manufacturing plants in six countries - Germany,
France, Spain, China, Czech Republic and the U.S.
Draftex will become part of GenCorp Vehicle Sealing, the industry
leader in sealing technology for sport utility vehicles and a major supplier of
sealing systems for passenger cars and pickup trucks. The segment reports to
Joseph Gray, GenCorp Vice President and President of GenCorp Vehicle Sealing.
Draftex adds about $415 million in annual sales to GenCorp for total
Vehicle Sealing sales of some $875 million. It also adds 5,484 employees
worldwide for total Vehicle Sealing employment of 10,370.
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The company expects the acquisition, including related cost synergies,
to be accretive by about $ 0.09 per share in 2001.
"The acquisition of Draftex is consistent with GenCorp's strategy for
our Vehicle Sealing segment to grow by participating in the consolidation
occurring within the automotive industry," said GenCorp Chairman and CEO Bob
Wolfe. "Not only will Draftex provide significant global strength and new growth
opportunities for the Vehicle Sealing segment, it will greatly improve GenCorp's
cash generation capability in the near term to fuel growth in other areas of the
company."
"We are excited to welcome Draftex with its complimentary customer and
platform bases, global capabilities and relationships, and outstanding people
and technologies to GenCorp Vehicle Sealing," Gray said. "As we immediately
begin integration activities, we expect to realize important cost synergies,
through management consolidation and the rationalization of production
capability on both continents."
A division of the Laird Group for over 30 years, Draftex maintains
global relationships with Volkswagen, BMW, Mercedes, Renault and Ford. It is a
key sealing supplier on platforms that include the Ford Focus, Volkswagen Golf
and Renault Scenic.
GenCorp Vehicle Sealing, with headquarters in Farmington Hills,
Michigan, operates five manufacturing facilities in North America, two European
plants located in Germany and Ireland, and three dedicated technical centers:
Farmington Hills, Michigan; Wabash, Indiana; and Rehburg, Germany.
Principal sealing platforms include the Ford F-Series and Ranger
Pickups, Ford Explorer, General Motors Chevrolet Pickup and the Mercedes
All-Purpose Vehicle.
"Together, GenCorp and Draftex provide a substantially broadened and
more diversified customer base," said Gray, "and a balanced portfolio that is
ideally positioned to grow, innovate and change with the marketplace."
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 we site at
http:www.gencorp.com.
