Singapore Company To Acquire LeeBoy Manufacturer

Posted on May 1, 2006

Singapore Technologies Engineering Ltd (ST Engineering) announced that Vision Technologies Land Systems (VTLS) Inc., one of its U.S. subsidiary operations, has entered into an agreement to acquire 100% of B.R. Lee Industries, Inc. for $129 million. Upon completion of the acquisition, BR Lee will be a wholly owned subsidiary of VTLS.

BR Lee, with its LeeBoy and Rosco branded machines, is a longtime player in the U.S. road construction and maintenance equipment market. Based in North Carolina, BR Lee offers an extensive product offering, with approximately 65 different models of equipment for road construction and maintenance equipment and has an extensive distribution network that covers all 50 states and 10 Canadian provinces. BR Lee's last 12 months' unaudited turnover, as of March 2006, was $120 million, with unaudited pre-tax income of $9.8 million.

The acquisition is in line with ST Engineering's thrust to develop its Land Systems sector into a global specialty vehicle and equipment industry group. This acquisition is expected to have synergies with other specialty vehicle companies in ST Engineering, in particular the recent investment in Guizhou Jonyang Kinetics in China. "ST Engineering offers BR Lee the infrastructure and vision to expand on a global landscape,” said Kelly Majeskie, president and CEO of B.R. Lee. “Leveraging on ST Engineering's financial strength and engineering resources, BR Lee aims to better serve its customers and stay at the forefront of pavement solutions technology with innovative quality products and excellent after sales support. We also welcome the opportunity to expand globally leveraging on ST Engineering's established marketing network and business presence in Asia."

“The addition of BR Lee to the ST Engineering family expands our presence in the U.S. market and is another important step towards our becoming a major commercial specialty vehicle and equipment player in the key North American and Asian markets,” said Tan Pheng Hock, president and CEO of ST Engineering. “With ST Engineering's established marketing network and business presence in Asia, we look forward to helping BR Lee grow in this region."