Stanadyne To Sell Subsidiary

Posted on July 4, 2006

Stanadyne Corp. has entered into a definitive agreement to sell its wholly-owned subsidiary, Precision Engine Products Corp. to GT Technologies, a part of GenTek Inc., Parsippany, N.J. The agreement covers the acquisition of the US-based assets of Precision Engine Products Corp. and all of the stock of its wholly-owned subsidiary in Brazil, Precision Engine Products, Ltda. The transaction is valued at $25 million in cash, with an additional potential for $10 million based on the achievement of certain performance levels during the 12 months following the sale. The closing is expected to occur by the end of this month.

Precision Engine Products manufactures hydraulic lash adjusters and roller rocker arm assemblies at its production facility in Tallahassee, Fla. "Precision Engine Products Corp. has been a part of our company for many years,” said M. David Jones, Stanadyne president and CEO. “After carefully evaluating the strategic direction of our businesses, we believe that PEPC will be a better fit within the GenTek group of companies. Although Stanadyne has devoted considerable resources to the restructuring of Precision Engine Products Corp., this sale allows us to exit this under-performing line of on-highway business and concentrate on our core off-highway markets and specialty fuel system businesses."

Stanadyne supplies diesel fuel injection and filtration systems, and oil and fuel supply pumps used in agricultural, construction, automotive, marine and industrial vehicle and equipment applications.