- r){seane 0.84 |e" Nil TOUR SES a 8a tea hnstinons! Deca [merch 27,1387 Yue Li ER raw son sae Mla [= {Page — Ses se et a (Cara ) Eo Harpo ved anh 88 1008 vend) | AA alates 4s, ‘Background: In June 1967, Bendix ac [Bete nets mes) wired Fram Corp primarily a maker of 2]BeIA Lat 00 ~ name bia andtuel ters andotherprodus 15 fear and truck engiaes. Almost im Imediatoly, the Fedoral Trade Com- "wan? > unt frission (FTC) challonged the legality of 3 caluclate te 35.14 Som Ine acquisition under the antitrust laws "i8761977 "1978" 19/9" 1980 "1981" 1982 1983 19841985. 1986, 1967 [= VALUELNE INC. [as-oie] land sought to force Bendixto dispose of "3317-37987 4750) 48.74, 488) 49.691 4603] 4004821] S403] S544] SLO0 Saapersh =) 60.85 Fram-Aftermorethansaven yearsoflii- 08) 01) 9672, 117.143) 170) 201, 46) 147) 198] 255 “Cahfiow” perth 4.45 ation theFTCissued an orderrequiring, “52, 458,25 12. 205, 22,78) 102 62) 21/55) 140. Gamingspersh ms 250 peices tcc a cet ont eerices (cca Wer 40 (110%) 20% wed mel wef Bod ood cof end roductlines owned by both Bencixand~ “a8 783) — a0” 98162) $8 4! ~1SB) 252” 190) “TSB “1.95 Capt Spending pera 2.25 fisFram subsidiary. n order to comply, 107,810) 1635, 1848, 1600, 1632 1688) 1748, 1228, 13381 1434] 16.50) Sek Yowepwrsh 2005 IGendix formed Facet and, on April 1,302 279, 278,279 284 284) 295, 308/305. 308|_ §.10{ Common Shs Outste wi 5.75] 11976, distributed one share of the com-) 17.7 236) = ~ 240, 7.1, 93" ==) NMF 135) ‘ig Kant PE Ratio 12.0} lary Tor each five shares of Bendixheld’ 63 in 292,78) 93) =| NM 130) | RetiePERabe 1.00 March 18th z dey) --|o--| == mene) ee Die i'n ean STRUCTURE aro 3006 100 ¥159) 198, 1942) W412] 128.) 1889) 1489) 16497 1708) 275) Sunol) | 350 ita Gent Se min Bueim ss St6s. | 35% 2a%, 25% 6h E0% 65K, 76% 89% 74K) 75%) 95% OperlingMargn 11.0% AF Debt $45.7. UF Interest $55 mi. iki 2) 24 25,2626) 30-35)” 38)” 44) 80) Depreciation (mil) 11. ot 67 mit eapta od ia 15, 743 987) § 22,28) ees, 7, 17|_ | Naomi) 14 ES geront enrol sis em tat. a Se SS anol a6 8 SOUR) == | AIH 38TH 50H | eo Tae ate 37.095 eoveron tsrscorcapt) [18% 5%, AME ne! 4%, 17%, 22%, NEL AN LON 1.8% | Ne Pk 49% eases, Uncapitaed annusl certain en, | 323) 375 412) 480) 800) «24. $82 4217 404) G00)” 473) 650) Working Capt CS) | 100 PononLabity None n'86 ve Novein'es | 8 147 175) 193) 257, 174) 202 263, 439) 518) 457) a5.0| LenglarmDedtComiy)) 70.9 485, 450, 467) 615, 447, 484) 472, $17; _372| 407] 441; 45.0) Nt Meth (Smit) | 24] Fi Stack None 32%) WME) 23%) 13K) NUF “AOKI B28 /°67%) NM) 3K 52%] 6.0%) % Emel Tolan | 9.5% Gorm Sick 3.078386 shs. orofcon'y | 32%) NME| 15%, NME| NWF, 13%) 47%, 578. MMe 0% aed Ne Mer | 720% Maran 828000 S17 rough 20990." | 325 NMP 18% NWF) NM 1.3%) 47%) 67%) NWF cach Assets 18 4a ‘nanulectures Te ie0 wotnolers 186 depot ecsivbies fat art nsgers own 150% of common; Facet mentor) 38.8. 81.4 38.8] comarca fit 4% of ize titration sre: salaried employes’ savinos pln. 8.2%; Arerican Secures fer 13 “13. _°28| toneandarcratcarbursore 22%) equipment components Corporation, 8% Presigon and Chet Execatve Oct lcwent Asses @3.3 79.8 758] [27 and oiled posuction equipment & supplies and ames R. lone, corporis. DE” Adare: 7030 South Neon Parena, ted te? tat Darts for recreation vehstes (7%). Has 2.120 employe, Yolo Aver, Sut 80, Tulsa, OK 74195, To. 918-482-100 Debt 24 '24 |23) Facet made a major acquisition .... On equity. We assume that such a sale will take ote" a, —2e 222 —122] February 3rd, the company paid $67 million place by the end of the June quarter. (Note: att or Purolator Couriert automotive Gta: o> this stock would stil continu to have too aa ATE fis “w'w'n | erations in North America and India. The much financial leverage for most investors.) oo ‘o¥s Sys we [Purolator segment had sales last year of 8h cow 88% at8% 262 | $145 million. So the acquisition bolsters. . . Nonetheless, we estimate that earn- =” OS “hit | Facet's sales by about 85%. PC has two ings per share will surge during fiscal Zs _45y 164 | national brands of filters manufactured 1987. Profits will gain from cost-cutting at 455 77-begar| along the Bast Const, while Facet's privete older operations as well a from the addition He rie hao St 2; Fat label filters are made in midwestern and Gf the Purolator faclities, For the Bottom 988 335 375 361 {ias9| Western facilities. Not only does the acquisi. line, pris shares will likely climb in two [BE RE He 282 |1288|tonenhance Facots ability to make abroad stags, partly relecting the expected stock Ge Bi BL BE BS ine oruutoand truck filters, the freightoost - Salein eral 4067, withthe full mmpact in the So 22 4s EE 5] savings will makeitslines morecompetitive. illowing year BS imo a an y TUNICS FRSUR A fal]... Asa result, itsfinanceshave become Earniny robably benefit for| TES on. 31 ta 1 bea St "Fl Very stretched. Largely reflecting the cost Parmings, will probably benefit for who ib gg Mhlol terminating an inherited, burdensome Fafecting th synergies inherent the crt {bet 12 428) 74 45. 6151| pension plan, longterm debt accounted for fination. So even though risky Facet stock fms] ze 1868s |""2i| Brveortatal capital at the close offiacal 1986 has mioted some 80% ireosent weeks. ful | BB) Bl lencoaSoptember Suihi-Now thecostofthe [keke se Nhawcavarsce” weston both 8 28 ita ott sclsition has nent longterm debt to some. forthe year ahead and te 3. v0 year pall [ga BE gal | 8115 millon, over 70% of total eapital Morton L. Steg 18a | |We expect a major stock sale in the | CASH POSITION BYearAvg 99086 Be ve ornoenos aena rao} [months ahead... Management Nas tated | Cream tune tnter re [ise | | | that would like to add some $30 million to | tim équrswturentneen, “Ton ig i Inet worth through the sale of common _| Working tpt't same Be x acl on de Sap BO Tea aay enon ho ooo oF ov Seg Tae 2, aoe Nm sornge ropord Compenys Pract Soong Yeo (8) Prvery sorninge Ges ent sounng change 9, $1.72: 3852, ral yi ee Series: oa"; |90¢ "80 eb, 1476-276; noweur| sm, 8 Factual material is obtained from sources believed to be reliable, but the publisher is not responsible for any errors or omissions contained herein,