T.J.T., Inc. Finalizes Arizona Acquisition

Business Wire, Jan 15, 1999

EMMETT, Idaho--(BUSINESS WIRE)--Jan. 15, 1999--T.J.T., Inc. (Nasdaq SmallCap:AXLE), a supplier of refurbished axles and tires to the manufactured housing industry, today reported that it has completed the acquisition of Ford's Tires and Axles in Chandler, Arizona.

The acquisition expands T.J.T.'s market area to 11 western states and adds approximately $3 million in annual sales.

T.J.T. entered into a management contract with Ford's in July 1998 which allowed the company to provide operating capital and management expertise in exchange for a monthly management fee while due diligence procedures were completed.

"Arizona is a very desirable market area," said Terrence Sheldon, president and chief executive officer of T.J.T. "This acquisition gives us a location in an area that is showing strong manufactured housing production growth. It will also serve to reduce some of the seasonal fluctuation T.J.T. experiences because of its operations in the Pacific Northwest."

The acquisition adds a recycling location in Chandler, Arizona to the company's five existing recycling operations in Emmett, Idaho; Centralia, Washington; Salem, Oregon; Woodland, California; and Platteville, Colorado.

Established in 1977, T.J.T. is major provider of recycled axles and inspected tires to the manufactured housing industry. In addition to effectively recycling these serviceable steel and rubber products, the company also sells aftermarket accessories to the manufactured housing industry and vinyl siding to the housing industry. T.J.T. has 10 consecutive years of profitability while growing with the expanding manufactured housing industry. For the fiscal year ended September 30, 1998, the company had revenue of $34.1 million.