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 automotive aftermarket, announced today that it is closing the acquisition of Dayton Parts (“Dayton”) for a total cash amount of approximately $ 338 million, subject to customary purchase price adjustments. The transaction was funded with $ 100 million in cash, with the remainder being funded by bonds under the company’s new revolving credit facility.

Simultaneously with the closing of the transaction, Dorman entered into a new $ 600 million revolving credit facility that replaces its existing $ 100 million revolving credit facility. The strong cash flow generation from the combined companies combined with the new revolving credit facility is expected to give Dorman more flexibility in executing its strategic priorities.

As a result of the completion of this transaction, Dorman is updating its guidance for 2021 to add Dorman’s expectations for Dayton for the remainder of 2021 to Dorman’s previously published guidance. The updated guidelines do not include the impact of potential future acquisitions or related financing, nor the potential impact of possible further government-ordered closures, nor the potential impact of supply chain disruptions due to the ongoing COVID-19 pandemic.

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

An investor presentation previously published in connection with the announcement of the acquisition with additional information on the transaction will remain available on the Dorman website at DormanProducts.com under “Investor Relations”.

About Dorman products

Dorman gives repair professionals and vehicle owners more freedom to repair cars and trucks by focusing on solutions first. For over 100 years, we’ve been a pioneering problem solver in the automotive aftermarket industry, bringing tens of thousands of replacement products to market that are designed to save time and money, and increase convenience and reliability.

Founded and headquartered in the United States, we’re a global company offering an ever-evolving parts catalog that covers both light and heavy vehicles, from chassis to body, engine bay to undercarriage, and hardware to more complex Electronics. View our full range and learn more at DormanProducts.com.

About Dayton parts

Dayton employs highly skilled and experienced men and women in all areas of manufacturing, sales and distribution. Its operations are in the United States and Canada. Dayton’s manufacturing facilities have state-of-the-art spring manufacturing facilities and can manufacture a variety of leaf spring designs including advanced high tension, hard flex and advanced parabolic options such as trailing arms and Z-beams. Dayton is known in the aftermarket for its high quality brakes, springs, steering, suspensions and other related product lines.

* Non-GAAP measures

In connection with the release of the company’s updated guidance for the fiscal year ended December 25, 2021, the company is disclosing a range for its expected diluted adjusted earnings per share, which is a financial metric that is inconsistent with broadly generally accepted accounting principles (GAAP). . Non-GAAP financial measures should not be used as a substitute for GAAP measures or viewed in isolation to analyze our past and future operating performance, financial condition, or cash flows. Additionally, our non-GAAP measures may not be comparable to similarly titled measures reported by other companies. However, we have provided this non-GAAP financial metric because we believe its presentation will provide useful information to investors by providing additional opportunities to assess our results, profitability trends, and underlying growth compared to previous and future periods, as well as our competitors to display. Management uses these and other non-GAAP financial measures to make financial, operational, and planning decisions and to evaluate our performance. Non-GAAP financial measures may reflect adjustments for fees such as fair value adjustments, amortization, transaction costs, severance payments, accelerated amortization, and other similar expenses related to acquisitions, as well as other items that we believe are unrelated to our ongoing 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 regarding net sales, adjusted diluted earnings per share, debt, liquidity and the company’s prospects. Words such as “believe,” “demonstrate,” “expect,” “estimate,” “forecast,” “anticipate,” “should,” “will” and “likely” and similar expressions identify forward-looking statements. 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 viewed as forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are stated. Such 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 could cause actual events to differ materially from those expressed or implied therein forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: (i) the age, condition and number of vehicles that require servicing; (ii) competition in the automotive aftermarket industry; (iii) any loss or decline in sales with one of our top customers; (iv) price competition; (v) limited customer shelf space; (vi) customer consolidation; (vii) widespread public health epidemics, including COVID-19; (viii) failure to maintain adequate inventory or anticipate changes in customer demand; (ix) returns related to excess inventory related to inventory; (x) the inability to purchase raw materials, components and other items from our suppliers; (xi) Third Party Availability and Costs; (xii) confidence in new product development; (xiii) changes or restrictions on access to automotive technology; (xiv) quality problems with our products; (xv) inability to protect our intellectual property; (xvi) Intellectual Property Infringement Claims; (xvii) failure to maintain the value of our brands; (xviii) cyber attacks; (xix) currency fluctuations and dependence on foreign suppliers; (xx) risks associated with trade receivables; (xxi) changes in US trade policy, including the introduction of tariffs; (xxii) the amount of our indebtedness; (xxiii) Risks associated with the sale of accounts receivable agreements; (xxiv) the expiry of LIBOR or the effects of the introduction of a new reference rate; (xxv) our Executive Chairman and his family, who own a substantial part 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) volatility in the market price of our common stock and potential securities class actions; (xxx) loss of service from our officers or other highly qualified and experienced contributors; (xxxi) the inability to (a) identify suitable acquisition candidates or complete acquisitions, (b) successfully integrate acquisitions, including the Dayton Acquisition, without disrupting relationships with customers, employees, suppliers or dealers, or (c) achieve anticipated synergies in connection with 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 control and economic sanctions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the actual results may differ materially from those expected, estimated or forecast. For additional information about factors that could cause actual results to differ materially from those contained in this press release, see the information in Part I, “Item 1A. Risk Factors ”in the Company’s Annual Report on Form 10-K for the fiscal year ended 26. The Company undertakes no obligation (and expressly disclaims any obligation) to update the information in this news release, including, but not limited to, situations where Forward-looking statements later prove to be inaccurate, whether as a result of new information, future events or otherwise.

Investor Relations contact

David Hession, SVP and Chief Financial Officer

[email protected]

(215) 997-1800


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