Carlyle to Purchase Automotive Parts Businesses of UIS for $800 Million

Washington, DC – Global private equity firm The Carlyle Group and UIS, Inc. based in Jersey City, New Jersey announced today that an affiliate of Carlyle has signed a definitive purchase agreement to acquire the automotive assets of UIS, Inc for approximately $800 million. Following the acquisition, the new company will be called United Components, Inc. The transaction is subject to customary conditions and regulatory approval and is expected to close in the second or third quarter of 2003. JPMorgan acted as financial advisor to UIS, Inc. in the transaction.

With annual revenues in excess of $900 million, United Components will be one of the largest domestic automotive parts manufacturers with a leading position in all of its major product lines to the aftermarket and specialized original equipment channels. The company will be a leading worldwide manufacturer and distributor of automotive parts and components, including filtration products, fuel and cooling system products, ignition and engine management products, driveline products, lighting equipment, engine and driveline segments, and other similar products.

Mr. Andrew Pietrini, Chairman and CEO of UIS, Inc. said, “We are excited to have reached an agreement with Carlyle. Their reputation, industry knowledge and global network make them an excellent buyer. We look forward to working with Carlyle to ensure that the highest levels of service and quality are maintained and that all of our employees and customers are treated properly during this transition.”

Carlyle Managing Director Leslie Armitage said, “We are very excited to add United Components to Carlyle’s growing automotive portfolio. UCI will be well positioned given its diverse base of customers and distribution channels, its excellent management, and the industry’s large and growing installed base of vehicles.”

The equity for this transaction will come from Carlyle Partners III, L.P., Carlyle’s flagship U.S. Buyout Fund. The Carlyle Group has received commitments from Lehman Brothers and JP Morgan to provide the debt financing needed to complete the transaction.

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