BLUFFDALE, Utah — Aero Performance Products has reached a definitive agreement to acquire specialty exhaust manufacturer Jones Exhaust Systems Inc.
Under terms of the agreement, Aero Performance Products will purchase all of the issued and outstanding shares of Jones Exhaust Systems including its manufacturing and real estate assets. The purchase is being financed with the participation of an investment banking firm, and Aero plans to announce details of its investment banking relationship in the next several days.
Bryan Hunsaker, CEO of Aero Performance Exhaust, commented, “The Jones transaction represents the culmination of more than 9 months of negotiation and due diligence. The company and its advisors have worked diligently to bring the opportunity to its shareholders, and we are very optimistic about the results. We believe that the terms of the financing for this acquisition are ideal for Aero and its shareholders and that the acquisition delivers tremendous shareholder value in terms of improved fundamentals, earnings and management. The combination of debt and equity financing demonstrates both the industry’s and financial markets’ support for this acquisition.”
Jones Exhaust Systems, founded in 1968, is one of the largest manufacturers of chrome exhaust tips and glasspack mufflers and performance diesel systems in the U.S. In 2001, Jones Exhaust Systems acquired Road Industries Inc., a leading manufacturer of truck accessories. Full Boar Performance was acquired in 2003 to enhance Jones Exhaust Systems’ position as a leader in both aftermarket exhaust and the performance exhaust industry. This acquisition doubled the facilities and the company now manufactures an expanded line of specialty and performance exhaust products in 45,000 square feet of facilities with 70 employees. Jones Exhaust delivers to its warehouse distributors with its own truck fleet. All stock orders arrive within two weeks, and the company has some of the lowest freight minimums in the industry.
“Jones Exhaust is not only a profitable company but it is one of the most well respected names in the industry,” said Hunsaker. “We believe that this acquisition will allow Jones Exhaust to continue to grow and prosper and that our combined resources will provide significant advantages for both Aero Exhaust and Jones Exhaust and will deliver operating synergies between the two companies. The combined company offers customers a wide range of quality products; provides channel partners with a complete line, worldwide distribution and manufacturing capabilities; and delivers shareholders improved fundamentals, substantial revenues, attractive earnings, quality management, and a plan for growth. The management and operations of Jones Exhaust will remain untouched during the merger and for the foreseeable future.”
