Dorman Products, Inc. Completes Acquisition of Dayton Parts

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COLMAR, Pa., Aug. 10, 2021 (GLOBE NEWSWIRE) – Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ: DORM), a leading supplier to the aftermarket industry of automobile, today announced that it has completed the acquisition of Dayton Parts (“Dayton”) for total cash consideration of approximately $ 338 million, subject to customary purchase price adjustments. The transaction was funded with $ 100 million from cash on hand, the balance being financed by borrowings under the Company’s new revolving credit facility.

Concurrently with the closing of the transaction, Dorman entered into a new five-year $ 600 million revolving credit facility, which replaces its existing $ 100 million revolving credit facility. The strong cash flow generation from the combined companies, as well as the new revolving credit facility, should provide Dorman with greater flexibility to execute its strategic priorities.

Following the closing of this transaction, Dorman is updating its forecast for 2021 to reflect the addition of Dorman’s expectations for Dayton for the remainder of 2021 to the forecast previously released by Dorman. The updated guidance does not include the impact of potential future acquisitions or related financings or the potential impacts of any other possible government-mandated closures, as well as any potential impact of supply chain disruptions caused by the ongoing COVID-19 pandemic.

Orientation 2021:
Updated guide Previous guide
Net sales $ 1,263 – $ 1,300 million $ 1,191 to $ 1,224 million
Growth vs 2020 16% – 19% 9% – 12%
Adjusted diluted EPS * $ 4.56 – $ 4.80 $ 4.40 – $ 4.60

A previously issued investor presentation in connection with the acquisition announcement containing additional information regarding the transaction remains available on Dorman’s website at DormanProducts.com under “Investor Relations”.

About Dorman products

Dorman gives repair professionals and vehicle owners greater freedom to repair cars and trucks by focusing on solutions first. For over 100 years, we’ve been a pioneer in solving problems in the automotive aftermarket industry, launching tens of thousands of replacement products designed to save time and money. and increase convenience and reliability.

Founded and based in the United States, we are a global organization offering an ever-evolving parts catalog, covering both light and heavy duty vehicles, from chassis to body, hood to chassis and hardware to complex electronics. Check out our full offer and learn more at DormanProducts.com.

About Dayton Parts

Dayton employs highly skilled men and women who are industry experts in all facets of manufacturing, sales and distribution. Its operations are located throughout the United States and Canada. Dayton’s manufacturing plants have state-of-the-art spring manufacturing equipment and can produce a variety of leaf spring designs, including high-stress, hard-bend and parabolic state-of-the-art options. advances such as swing arms and Z-beams. Dayton is known in the aftermarket for its high quality brakes, springs, steering, suspension and other related product lines.

* Non-GAAP measures

As part of providing updated guidance for the Company for the fiscal year ending December 25, 2021, the Company discloses a range for its expected adjusted diluted earnings per share, which is a non-derivative financial measure in accordance with accounting principles. generally accepted (GAAP). . Non-GAAP financial measures should not be used as a substitute for GAAP measures, or taken in isolation, for the purpose of analyzing our past and future operating performance, financial condition or cash flows. In addition, our non-GAAP measures may not be comparable to measures with the same title published by other companies. However, we have provided this non-GAAP financial measure because we believe its presentation provides useful information to investors by providing additional means to view our results, profitability trends and underlying growth compared to previous periods and futures and our peers. Management uses this and other non-GAAP financial measures to make financial, operational and planning decisions and to assess our performance. Non-GAAP financial measures may reflect adjustments for expenses such as fair value adjustments, amortization, transaction costs, severance, accelerated depreciation and other similar expenses related to acquisitions as well. than other items which we believe are unrelated to our continued performance.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to net sales, adjusted diluted earnings per share, leverage, liquidity and prospects for the Company. Society. Words such as “believe”, “demonstrate”, “expect”, “estimate”, “anticipate”, “anticipate”, “should”, “will” and “probable” and similar expressions identify forward-looking statements . However, the absence of these words does not mean that the statements are not forward-looking. In addition, statements that are not historical should also be considered as forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. These forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors (many of which are beyond our control) that may cause actual events to be materially different from. those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: (i) the age, condition and number of vehicles requiring maintenance; (ii) competition in the automotive aftermarket industry; (iii) loss or decrease in sales to one of our major customers; (iv) price competition; (v) limited storage space for customers; (vi) grouping of clients; (vii) generalized public health epidemics, including COVID-19; (viii) failure to maintain sufficient inventory or anticipate changes in customer demand; (ix) returns related to excess excess inventory; (x) the inability to purchase raw materials, components and other items from our suppliers; (xi) the availability and cost of third party transport providers; (xii) recourse to the development of new products; (xiii) modifications or restrictions on access to automotive technology; (xiv) quality problems with our products; (xv) failure to protect our intellectual property; (xvi) claims for infringement of intellectual property; (xvii) failure to respect the value of our brands; (xviii) cyber attacks; (xix) fluctuations in foreign currencies and dependence on foreign suppliers; (xx) exposure to risks associated with accounts receivable; (xxi) changes in US trade policy, including the imposition of tariffs; (xxii) the level of our indebtedness; (xxiii) risks associated with contracts for the sale of accounts receivable; (xxiv) phasing out LIBOR or the impact of imposing a new benchmark rate; (xxv) our Executive Chairman and his family owning a significant portion of the Company; (xxvi) adverse economic conditions; (xxvii) quarterly fluctuations and disruptions due to events beyond our control; (xxviii) adverse results of legal proceedings; (xxix) the volatility of the market price of our common shares and a possible securities class action lawsuit; (xxx) lose the services of our senior executives or other highly qualified and experienced contributors; (xxxi) failure to (a) identify suitable acquisition candidates or complete acquisitions, (b) integrate acquisitions, including the Dayton acquisition, successfully, without disrupting relationships with customers, employees, suppliers or dealers, or (c) to realize the synergies expected from such acquisitions; (xxxii) changes in tax laws; (xxxiii) global climate change and related regulations; (xxxiv) violations of anti-corruption laws; and (xxxv) laws and regulations relating to import and export controls and economic sanctions. If one or more of these risks or uncertainties materialize, or if the underlying assumptions turn out to be inaccurate, actual results could differ materially from those anticipated, estimated or projected. For further information regarding factors that could cause actual results to differ materially from the information contained in this press release, reference is made to the information in Part I, “Section 1A. Risk Factors ”in the Company’s Annual Report on Form 10-K for the fiscal year ended December 26, 2020, as amended, and other documents filed by the Company with the United States Securities and Exchange Commission. The Company has no obligation (and expressly disclaims any obligation to) update the information contained in this press release, including, but not limited to, any situation in which a forward-looking statement subsequently proves to be inaccurate, whether due to new information, future events or otherwise.

Investor Relations Contact

David Hession, Senior Vice President and Chief Financial Officer

[email protected]

(215) 997-1800


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