-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, M0H66J106DriD+idi70WMIFoPoHfpByH3kva1RVqx0RthW6+IQmk8dHXpbac4dc1 BqNcQrNJjvkAqOKkV2oZpQ== 0000950124-99-006525.txt : 19991220 0000950124-99-006525.hdr.sgml : 19991220 ACCESSION NUMBER: 0000950124-99-006525 CONFORMED SUBMISSION TYPE: SC 13E3/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 19991217 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: AUTOCAM CORP/MI CENTRAL INDEX KEY: 0000879235 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 382790152 STATE OF INCORPORATION: MI FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13E3/A SEC ACT: SEC FILE NUMBER: 005-41798 FILM NUMBER: 99776540 BUSINESS ADDRESS: STREET 1: 4070 EAST PARIS AVE CITY: KENTWOOD STATE: MI ZIP: 49512 BUSINESS PHONE: 6166980707 MAIL ADDRESS: STREET 1: 4070 EAST PARIS AVENUE SE CITY: KENTWOOD STATE: MI ZIP: 49512 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: KENNEDY JOHN C CENTRAL INDEX KEY: 0001098541 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 376689158 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13E3/A BUSINESS ADDRESS: STREET 1: GRAND RAPIDS 616- 698 0707 CITY: KENTWOOD STATE: MI ZIP: 49512 BUSINESS PHONE: 6166980707 MAIL ADDRESS: STREET 1: GRAND RAPIDS STREET 2: ?? CITY: MICH SC 13E3/A 1 AMENDEMENT #1 TO SCHEDULE 13E3
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

AMENDMENT NO. 1
TO
SCHEDULE 13E-3
RULE 13E-3 TRANSACTION STATEMENT
(Pursuant to Section 13(e) of the Securities Exchange Act of 1934)

AUTOCAM CORPORATION

(Name of Issuer)

AUTOCAM CORPORATION

JOHN C. KENNEDY
(Name of Person(s) Filing Statement)

Common Stock, Without Par Value

(Title of Class of Securities)

052907102

(CUSIP Number of Class of Securities)

     
Warren A. Veltman
Autocam Corporation
4070 East Paris Avenue
Kentwood, MI 49512
(616) 698-0707		 Stuart F. Cheney
Dickinson Wright PLLC
200 Ottawa Avenue, Suite 900
Grand Rapids, MI 49503
(616) 458-1300
(Name, Address and Telephone Number of Persons Authorized to Receive Notices and
Communications on Behalf of Persons Filing Statement)

     This statement is filed in connection with (check the appropriate box):

a.   [X]  The filing of solicitation materials or an information statement subject to Regulation 14A, Regulation 14C, or Rule  13E-3(c) under the Securities Exchange Act of 1934.
 
b.   [   ]  The filing of a registration statement under the Securities Act of 1933.
 
c.   [   ]  A tender offer.
 
d.   [   ]  None of the above.

     Check the following box if the soliciting materials or information statement referred to in checking box (a) are preliminary copies.  [X]

CALCULATION OF FILING FEE

     
Transaction Valuation(1) Amount of Filing Fee(1)
$124,365,625 $24,867.91

(1)  Determined in accordance with Rule 0-11(c) of the Securities Exchange Act of 1934. The fee was computed on the basis of the purchase of 4,181,586 shares of Common Stock of the Issuer at $18.75 cash per share and the purchase of 682,884 options to purchase Common Stock of the Issuer at a price per option equal to the difference between $18.75 and the exercise price of each such option, plus the $40,000,000 book value of the shares of Titan Holdings to be received by John C. Kennedy in exchange for 2,133,333 shares of Common Stock.

[X]  Check box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of Filing.
     
Amount Previously Paid:
Form or Registration No.:
Filing Party:
Date Filed:		 $24,867.91
Schedule 14A
Autocam Corporation
November 9, 1999

CROSS REFERENCE SHEET

       The following cross reference sheet is being supplied pursuant to General Instruction F to Schedule 13E-3 and shows the location in the Schedule 14A, filed by Autocam Corporation with the Securities and Exchange Commission on the date hereof, of the information required to be included in response to the items of this statement. The information in the Schedule 14A, which is attached hereto as Exhibit 17(d), is hereby expressly incorporated herein by reference and the responses to each item are qualified in their entirety by the provisions of the Schedule 14A.

     
Item in Location
Schedule 13E-3 in Schedule 14A
Item 1(c) "MARKET PRICES OF COMMON STOCK”
Item 3(a) "CERTAIN TRANSACTIONS” and “BACKGROUND OF THE MERGER”
Item 3(b) "BACKGROUND OF THE MERGER”
Item 4(a) "SUMMARY,” “PROVISIONS OF THE MERGER AGREEMENT,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION” and “DISSENTERS’ RIGHTS”
Item 4(b) "SUMMARY,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER,” “PROVISIONS OF THE MERGER AGREEMENT— Merger Consideration, —Treatment of Stock Options, Shareholders Voting Agreement, —Conditions Precedent, — Kennedy’s Agreements”
Item 5(a) "SUMMARY,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER,” “DISSENTERS’ RIGHTS,” “PROVISIONS OF THE MERGER AGREEMENT— Merger Consideration, —Additional Agreements, —Fees and Expenses, — Shareholders Voting Agreement, —Conditions Precedent, —Termination, Fees, Amendment and Waiver, —Kennedy’s Agreements”
Item 5(b) Not applicable
Item 5(c) "SUMMARY— Interests of Certain Persons in the Merger Transaction,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER— Continued Employment,” and “PROVISIONS OF THE MERGER AGREEMENT— Shareholders Voting Agreement”
Item 5(d) "SUMMARY—Effects of the Merger; Merger Consideration,” “REASONS FOR THE MERGER; RECOMMENDATION OF THE BOARD OF DIRECTORS,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER— Continued Equity Interest,” “PROVISIONS OF THE MERGER AGREEMENT— Merger Consideration, — Shareholders Voting Agreement, —Kennedy’s Agreements”
Item 5(e) None
Item 5(f) Not applicable

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Item in Location
Schedule 13E-3 in Schedule 14A
Item 6(a) "SUMMARY— The Companies, — Effects of the Merger; Merger Consideration,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER— Continued Equity Interest,” “PROVISIONS OF THE MERGER AGREEMENT— Merger Consideration, —Treatment of Stock Options, — Fees and Expenses, — Kennedy’s Agreements”
Item 6(b) "SUMMARY— Payment of Fees and Expenses,” “PROVISIONS OF THE MERGER AGREEMENT— Fees and Expenses, —Termination, Fees, Amendment and Waiver”
Item 6(c) Not applicable
Item 6(d) Not applicable
Item 7(a)-(c) "SUMMARY— Reasons for the Merger,” “BACKGROUND OF THE MERGER,” “REASONS FOR THE MERGER; RECOMMENDATION OF THE BOARD OF DIRECTORS,” and “OPINION OF AUTOCAM’S FINANCIAL ADVISOR”
Item 7(d) "SUMMARY— Effects of the Merger; Merger Consideration, —Dissenters’ Rights, —Interests of Certain Persons in the Merger Transaction, — Payment of Fees and Expenses, —Federal Income Tax Consequences,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “OPINION OF AUTOCAM’S FINANCIAL ADVISOR,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER,” “ACCOUNTING TREATMENT,” “FEDERAL INCOME TAX CONSEQUENCES,” “DISSENTERS’ RIGHTS,” and “PROVISIONS OF THE MERGER AGREEMENT”
Item 8(a)-(b), (d)-(f) "SUMMARY— Recommendation of the Board of Directors, —Opinion of Autocam’s Financial Advisor, —Reasons for the Merger,” “BACKGROUND OF THE MERGER,” “REASONS FOR THE MERGER; RECOMMENDATION OF THE BOARD OF DIRECTORS,” and “OPINION OF AUTOCAM’S FINANCIAL ADVISOR”
Item 8(c) "QUESTIONS AND ANSWERS ABOUT THE MERGER TRANSACTION,” “SUMMARY— Voting at the Special Meeting; Votes Required for Approval, —Certain Conditions to the Merger,” “THE SPECIAL MEETING,” and “PROVISIONS OF THE MERGER AGREEMENT— Conditions Precedent”
Item 9(a)-(b) "SUMMARY— Opinion of Autocam’s Financial Advisor,” “BACKGROUND OF THE MERGER,” “OPINION OF AUTOCAM’S FINANCIAL ADVISOR,” and ANNEX B to the Proxy, Fairness Opinion of Raymond James & Associates, Inc.
Item 10(a) "INTERESTS OF CERTAIN PERSONS IN THE MERGER— Stock Options,” “PRINCIPAL SHAREHOLDERS”
Item 10(b) None

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Item in Location
Schedule 13E-3 in Schedule 14A
Item 11 "SUMMARY,” “THE SPECIAL MEETING— Record Date; Voting at the Special Meeting,” “BACKGROUND OF THE MERGER,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER,” “DISSENTERS’ RIGHTS,” “PROVISIONS OF THE MERGER AGREEMENT” including specifically but not limited to “PROVISIONS OF THE MERGER AGREEMENT— Additional Agreements, Shareholders Voting Agreement, —Kennedy’s Agreements” and ANNEX A to the Proxy, Merger Agreement.
Item 12(a)-(b) "SUMMARY— Recommendation of the Board of Directors, —Opinion of Autocam’s Financial Advisor, —Reasons for the Merger,” “BACKGROUND OF THE MERGER,” “REASONS FOR THE MERGER; RECOMMENDATION OF THE BOARD OF DIRECTORS,” and “OPINION OF AUTOCAM’S FINANCIAL ADVISOR”
Item 13(a) "QUESTIONS AND ANSWERS ABOUT THE MERGER TRANSACTION,” “SUMMARY— Dissenters’ Rights,” “THE SPECIAL MEETING— Record Date; Voting at the Special Meeting,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “DISSENTERS’ RIGHTS,” and “PROVISIONS OF THE MERGER AGREEMENT— Merger Consideration” and ANNEX C to the Proxy, Summary of Dissenters’ Rights
Item 13(b) "WHO CAN HELP ANSWER YOUR QUESTIONS,” “WHERE YOU CAN FIND MORE INFORMATION,” “SUMMARY— Dissenters’ Rights” and “DISSENTERS’ RIGHTS”
Item 13(c) Not applicable
Item 14(a) "SUMMARY SELECTED FINANCIAL DATA”
Item 15(a) "SUMMARY— Interests of Certain Persons in the Merger Transaction, Certain Conditions to the Merger,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER,” “PROVISIONS OF THE MERGER AGREEMENT— Merger Consideration, —Conditions Precedent, Kennedy’s Agreements”
Item 15(b) "BACKGROUND OF THE MERGER,” “OPINION OF AUTOCAM’S FINANCIAL ADVISOR”
Item 17(a) Not applicable
Item 17(b) ANNEX B, Fairness Opinion of Raymond James & Associates, Inc.
Item 17(c)(1) ANNEX A, Merger Agreement
Item 17(c)(3) ANNEX C, Summary of Dissenters’ Rights
Item 17(e) ANNEX C, Summary of Dissenters’ Rights
Item 17(f) Not applicable

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      This Rule 13E-3 Transaction Statement (the “Statement”) relates to the Agreement and Plan of Merger dated as of November 6, 1999 (“Merger Agreement”) and related agreements, see Annex A and Annex B to Schedule 14A (collectively with all other annexes and exhibits, the “Schedule 14A”) filed by Autocam Corporation (“Autocam”) with the Securities and Exchange Commission on the date of this Statement. All references below to the “Proxy” are references to the Schedule 14A. Pursuant to the Merger Agreement by and among Titan Holdings, Inc. (“Titan Holdings”), its wholly owned subsidiary, Titan Acquisition Corporation (“Titan Acquisition”), and Autocam, Titan Acquisition will be merged with and into Autocam, with Autocam continuing as the surviving corporation and becoming a wholly owned subsidiary of Titan Holdings. If the Merger Agreement and the merger are approved and adopted by the shareholders of Autocam, each share of common stock, without par value, of Autocam (the “Common Stock”) will be converted into the right to receive $18.75 per share in cash, without interest, except shares held by shareholders who properly exercise their dissenters’ rights under Michigan law, and except 2,133,333 shares owned by John C. Kennedy, Autocam’s majority shareholder, director, President and Chief Executive Officer, representing approximately 33.8% of Autocam’s outstanding common stock, which shall be exchanged for shares of preferred stock and common stock of Titan Holdings. The merger, conversion and exchange and any other transactions contemplated by the Merger Agreement and related agreements are sometimes referred to as the “Transaction.”

Item 1.  Issuer and Class of Security Subject to the Transaction

  (a) The name of the issuer is Autocam Corporation, a Michigan corporation (also referred to as the “Company” or “Autocam.”) The address of Autocam’s principal executive office is 4070 East Paris Avenue, Kentwood, Michigan 49512. The class of equity securities to which this Statement relates is Common Stock, without par value, of Autocam.
 
  (b)  The title of the securities subject to the Transaction is Common Stock, without par value, of Autocam. As of December 13, 1999, there were approximately 6,314,919 shares of Common Stock outstanding. As of December 13, 1999, there were approximately 177 record holders of Common Stock.
 
  (c) The information set forth in the Proxy under the heading “MARKET PRICES OF COMMON STOCK” is incorporated herein by reference.
 
  (d)  During each of the past two fiscal years cash dividends in the amount of $.08 per share (when adjusted to give effect to all Common Stock dividends and splits issued in such fiscal years) have been paid annually. In addition to restrictions imposed by applicable law including, for example, the Michigan Business Corporation Act, Autocam dividends are restricted to an annual amount not greater than $1,000,000 under its bank agreements.
 
  (e) The Company has not made any underwritten public offering of the Common Stock for cash which was registered under the Securities Act of 1933 or exempt from registration pursuant to Regulation A during the three years prior to the date of this Schedule 13E-3.
 
  (f)  Autocam has purchased 115,000 shares of its Common Stock at prices ranging from $12.125 per share to $14.625 per share in the quarter ended December 31, 1998, at a weighted average purchase price of $12.45 for such purchases. Since July 1, 1997, there have been no purchases of Autocam Common Stock under the Autocam Corporation 1998 Key Employee Stock Option Plan. There have been purchases of 2,500 shares of Autocam Common Stock as a result of officer exercises under The Autocam Corporation 1991 Incentive Stock Option Plan (the “Plan”) at a price of $5.77 per share in the quarter ended December 31, 1998. Investor Services Trust Company, as Trustee for the Autocam Corporation 401(k) Plan (the “401(k)”) has purchased 100,227 shares of Autocam Common Stock as a result of employee purchases since July 1, 1997, at prices ranging from $9.000 per share to $20.3750 per share. The weighted average purchase price of the Common Stock purchased by the Manager for

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  the 401(k) for the fiscal quarters ended September 30, 1997, December 31, 1997, March 31, 1998, June 30, 1998, September  30, 1998, December 31, 1998, March 31, 1999, June 30, 1999, September 30, 1999, and for the period from October 1, 1999 to December 13, 1999 was $12.3766, $14.5015, $15.0189, $18.1813, $15.8843, $13.9389, $11.9126, $9.7806, $13.9130, and $11.7964 respectively. In addition John C. Kennedy, Autocam’s majority shareholder, director, President and Chief Executive Officer, has purchased 67,715 shares of Autocam Common Stock since July 1, 1997, at prices ranging from $9.3125 per share to $17.1400 per share. The average purchase price of the Common Stock purchased by Mr. Kennedy for each Autocam fiscal quarter in which Mr. Kennedy made purchases, including quarters ended June 30, 1998, September 30, 1998, March 31, 1999 and June 30, 1999 was $17.1400, $16.3853, $9.7407 and $9.3500, respectively.

Item 2.  Identity and Background

 (a)-(d)  This Statement is filed by Autocam and John C. Kennedy. Autocam is the issuer of the Common Stock subject to the Rule 13e-3 Transaction and Mr. Kennedy is Autocam’s majority shareholder, director, President and Chief Executive Officer. The information set forth in Autocam’s Annual Report on Form 10-K for the fiscal year ended June 30, 1999 under the heading “DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT” is hereby incorporated by reference pursuant to General Instruction D of Schedule  13E-3. The name and business address for each director or executive officer or person controlling Autocam is as set forth below:

David J. Wagner, Old Kent Financial Corporation, 111 Lyons Street, Grand Rapids, MI 49503

Kim Korth, International Resource Network, Inc., 1400 McKay Tower, 146 Monroe Center, Grand Rapids, MI 49503

John C. Kennedy, Autocam Corporation, 4070 East Paris Avenue, Kentwood, MI 49512

Kenneth K. Rieth, Riviera Tool Company, 5460 Executive Parkway, S.E., Grand Rapids, MI 49512

Mark J. Bissell, BISSELL, INC., 2345 Walker, N.W., Grand Rapids, MI 49544

Warren A. Veltman, Autocam Corporation, 4070 East Paris Avenue, Kentwood, MI 49512

Robert L. Hooker, Mazda Great Lakes, 618 Kenmoor, S.E., Grand Rapids, MI 49546

 (e)-(f)  During the last five years, no person filing this Statement and no director, executive officer, or control person of Autocam has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or was or is subject to a judgment, decree or final order enjoining violations of, or prohibiting activities, subject to, federal or state securities laws or finding any violation of such laws.

  (g) All directors, executive officers or persons controlling Autocam are United States citizens.

Item 3.  Past Contacts, Transactions or Negotiations

  (a) The information set forth in the Proxy under the headings “CERTAIN TRANSACTIONS,” “BACKGROUND OF THE MERGER” is incorporated herein by reference. The information set forth in Item 1(f) hereof is incorporated herein by reference.
 
  (b) The information set forth in the Proxy under the heading “BACKGROUND OF THE MERGER” is incorporated herein by reference. The information set forth in Item 9(a)-(b) hereof is incorporated herein by reference.

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Item 4.  Terms of the Transaction

  (a)  The information set forth in the Proxy under the headings “SUMMARY,” “PROVISIONS OF THE MERGER AGREEMENT,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION” and “DISSENTERS’ RIGHTS” is incorporated herein by reference.
 
  (b)  The information set forth in the Proxy under the headings “SUMMARY,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER,” “PROVISIONS OF THE MERGER AGREEMENT— Merger Consideration, Treatment of Stock Options, —Shareholders Voting Agreement, —Conditions Precedent, Kennedy’s Agreements” is incorporated herein by reference.

Item 5. Plans and Proposals of the Issuer or Affiliate

  (a)  The information set forth in the Proxy under the headings “SUMMARY,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER,” “DISSENTERS’ RIGHTS,” “PROVISIONS OF THE MERGER AGREEMENT— Merger Consideration, —Additional Agreements, —Fees and Expenses, — Shareholders Voting Agreement, —Conditions Precedent, —Termination, Fees, Amendment and Waiver, —Kennedy’s Agreements” is incorporated herein by reference.
 
  (b) Not applicable.
 
  (c)  Upon consummation of the Rule 13e-3 Transaction, the current board of directors of the Company shall resign and the current board of directors of Titan Acquisition shall become the board of directors of the surviving entity. The information set forth in the Proxy under the headings “SUMMARY—Interests of Officers and Directors in the Merger Transaction,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER— Continued Employment,” and “PROVISIONS OF THE MERGER AGREEMENT— Shareholders Voting Agreement” is incorporated herein by reference.
 
  (d)  The dividend rate and policy of Autocam after the merger will likely decrease both the rate and frequency of dividends, which ultimately will be controlled by Aurora Capital Group. Aurora Capital Group is a private investment firm located in Los Angeles, California which will be the general partner of a limited partnership holding all stock of Titan Holdings, the parent company of Autocam after the merger. The information set forth in the Proxy under the headings “SUMMARY— Effects of the Merger; Merger Consideration,” “REASONS FOR THE MERGER; RECOMMENDATION OF THE BOARD OF DIRECTORS,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER— Continued Equity Interest,” “PROVISIONS OF THE MERGER AGREEMENT— Merger Consideration, —Shareholders Voting Agreement, — Kennedy’s Agreements” is incorporated herein by reference.
 
  (e) Other than as set forth in Item 5(d) above, Autocam has no plan or proposal for material changes in Autocam’s corporate structure or business.
 
  (f) Not applicable.
 
  (g) Autocam’s obligation to file reports pursuant to 15(d) of the Securities Exchange Act of 1934 is expected to be suspended after the Transaction.

Item 6.  Source and Amount of Funds and Other Consideration

  (a) Funds used to effect the Transaction will be available through equity investments in the approximate amount of $115,000,000 plus concurrent bank refinancing of certain indebtedness

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  of Autocam in the approximate amount of $115,060,320. The information set forth in Proxy under the headings “SUMMARY— The Companies, —Effects of the Merger; Merger Consideration,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER— Continued Equity Interest,” “PROVISIONS OF THE MERGER AGREEMENT— Merger Consideration, —Treatment of Stock Options, —Fees and Expenses, Kennedy’s Agreement” is incorporated herein by reference.
 
  (b) The following expenses are estimated to be incurred in connection with the merger Transaction and have been paid or are expected to be paid by Autocam.

             
Description Amount
Estimated Professional and Other expenses:
Legal—Dickinson Wright PLLC $ 200,000.00
Legal—Warner Norcross & Judd 100,000.00
Legal—Simeon Associates (France) 30,000.00
Financial Printer 100,000
Filing Fees 70,000
Management Presentation—International Resource Network 35,200.00
Travel—Europe, Chicago, California 30,100.00
Accounting/Tax—Deloitte & Touche U.S. 20,000.00
Accounting/Tax—Deloitte & Touche France 10,000.00
Independent Committee—Fees 12,000.00
Other 25,000.00
TOTAL—estimate of expenses accrued through mid December 1999. $ 652,300
Estimated Investment Banker fee:
(Based upon total consideration as of October 28, 1999 $229,995,772.00)
.3% on first $100,000,000 $ 300,000.00
.6% on next $100,000,000 600,000.00
1.2% on amount over $200,000,000 359,949.26
Total Investment Banking Fee 1,259,949.26
Add: estimate of Raymond James & Associates, Inc. expenses 15,000.00
Total Raymond James & Associates, Inc. fee 1,274,949.26
TOTAL PROJECT TITAN EXPENSES $ 1,927,249.26

  Additional legal, accounting and other expenses have been and will be incurred by other parties, including Aurora Capital Group, in connection with the merger and will be paid by those parties except as otherwise agreed in the Merger Agreement. The information set forth in the Proxy under the headings “SUMMARY— Payment of Fees and Expenses,” “PROVISIONS OF THE MERGER AGREEMENT— Fees and Expenses, —Termination, Fees, Amendment and Waiver” is incorporated herein by reference.

  (c)  A bank group has committed to refinance certain Autocam indebtedness in the approximate amount of $115,060,320 and to provide at least approximately $10,500,000 of additional funds to cover fees and expenses related to the Transaction through a combination of a $75 million six-year term loan, a $50 million seven-year term loan and a $40 million six-year revolving credit facility, guaranteed by Titan Holding and certain Autocam subsidiaries as agreed between the parties, and secured by all assets of Autocam and the guarantors. The loans will bear interest at rates ranging from the Applicable Bank Rate (which may be prime rate or a multiple of the federal funds effective rate or the secondary market three-month CD rate) plus 2.0-2.5% or the Eurodollar Rate plus 3.0-3.5% depending upon the facility, will require

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  certain mandatory prepayments and are conditioned upon consummation of the Transaction and certain equity input, aggregate consideration and maximum expense requirements in connection with the Transaction, in addition to the banks’ customary conditions.

  (d) The refinancing of existing Autocam debt shall be funded by a bank loan in the ordinary course of business.

Item 7.  Purpose(s), Alternatives, Reasons and Effects

 (a)-(c)  The information set forth in the Proxy under the headings “SUMMARY— Reasons for the Merger,” “BACKGROUND OF THE MERGER,” “REASONS FOR THE MERGER; RECOMMENDATION OF THE BOARD OF DIRECTORS,” and “OPINION OF AUTOCAM’S FINANCIAL ADVISOR” is incorporated herein by reference.

  (d)  The information set forth in the Proxy under the headings “SUMMARY— Effects of the Merger; Merger Consideration, — Dissenters’ Rights, —Interests of Certain Persons in the Merger Transaction, Payment of Fees and Expenses, —Federal Income Tax Consequences,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “OPINION OF AUTOCAM’S FINANCIAL ADVISOR,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER,” “ACCOUNTING TREATMENT,” “FEDERAL INCOME TAX CONSEQUENCES,” “DISSENTERS’ RIGHTS,” and “PROVISIONS OF THE MERGER AGREEMENT” is incorporated herein by reference.

Item 8.  Fairness of the Transaction

(a)-(b),   The information set forth in the Proxy under the headings “SUMMARY— Recommendation
(d)-(f)    of the Board of Directors, —Opinion of Autocam’s Financial Advisor, —Reasons for the Merger,” “BACKGROUND OF THE MERGER,” “REASONS FOR THE MERGER; RECOMMENDATION OF THE BOARD OF DIRECTORS,” and “OPINION OF AUTOCAM’S FINANCIAL ADVISOR” is incorporated herein by reference.

  (c)  The information set forth in the Proxy under the headings “QUESTIONS AND ANSWERS ABOUT THE MERGER TRANSACTION,” “SUMMARY— Voting at the Special Meeting; Votes Required for Approval, — Certain Conditions to the Merger,” “THE SPECIAL MEETING” and “PROVISIONS OF THE MERGER AGREEMENT— Conditions Precedent” is incorporated herein by reference.

Item 9.  Reports, Opinions, Appraisals and Certain Negotiations

 (a)-(b)  In the past two years, Raymond James & Associates, Inc., formerly Roney & Co., has served Autocam and its affiliates as consultant and broker in the acquisition of The Hamilton Group in June 1997, and to review strategic alternatives including the possible sale of the Company in an engagement commencing on January 26, 1998. For those engagements, Raymond James & Associates, Inc. received fees totaling $35,000 per engagement. Raymond James & Associates, Inc. was engaged by an independent special committee of Autocam’s Board of Directors to review strategic alternatives for Autocam pursuant to a July 2, 1999 engagement letter. Its compensation in connection with this engagement will include a fee based upon a fee of $900,000 for the first $200,000,000 of total consideration paid for the Common Stock and 1.2% of the total consideration amount greater than $200,000,000, with $150,000 of the fee paid at the signing of a definitive acquisition agreement. The information set forth in the Proxy under the headings “SUMMARY— Opinion of Autocam’s Financial Advisor,” “BACKGROUND OF THE MERGER,” “OPINION OF AUTOCAM’S FINANCIAL ADVISOR,” and ANNEX B to the Proxy, Fairness Opinion of Raymond James & Associates,

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Inc. is incorporated herein by reference. The information set forth in Item 6(b) hereof is incorporated herein by reference.

  (c) The opinion of Raymond James & Associates, Inc. will be made available for inspection and copying at the principal executive offices of Autocam during its regular business hours by any interested Autocam Common stockholder or his representative who has been so designated in writing.

Item 10.  Interest in Securities of the Issuer

  (a)  As of December 13, 1999, The Autocam Corporation 1991 Incentive Stock Option Plan had outstanding options to purchase 537,903 shares totaling approximately 8.52% in the aggregate of Autocam Common Stock. 826,875 shares were initially reserved for the Plan. As of December 13, 1999, the Autocam Corporation 1998 Key Employee Stock Option Plan had outstanding options to purchase 144,981 shares totaling approximately 2.3% in the aggregate of Autocam Common Stock. 300,000 shares were initially reserved for the Autocam Corporation Key Employee Stock Option Plan. As of December 13, 1999, the Autocam Corporation 401(k) Plan beneficially owned 138,989 shares totaling approximately 2.2% in the aggregate of Autocam Common Stock. The information set forth in the Proxy under the headings “INTERESTS OF CERTAIN PERSONS IN THE MERGER— Stock Options,” “PRINCIPAL SHAREHOLDERS” is incorporated herein by reference. The address information set forth in Item 1 hereof is incorporated herein by reference.
 
  (b)  No transaction in Autocam Common Stock was effected during the past 60 days by Autocam, under the Autocam Corporation 1991 Incentive Stock Option Plan, under the 1998 Autocam Corporation Key Employee Stock Option Plan, or by an executive officer, director, control person or subsidiary of Autocam. In the ordinary course of the 401(k) management, Investor Services Trust Company, as Trustee for the Autocam Corporation 401(k) Plan, has made required purchases for the plan of 8,616 shares of Autocam Common Stock with a weighted average price of $11.5522 per share in 5 transactions totaling $99,533.36 within 60 days of December 13, 1999. Each purchase was effected through the 401(k) Plan’s regular broker, Robert W. Baird & Co., Incorporated in Grand Rapids, Michigan. The dates, prices per share, and number of shares purchased in each transaction were as follows:
                 
Date Number of Shares Price Per Share
12/10/99 231 $ 16.6706
12/01/99 443 17.0625
11/22/99 432 16.9781
11/01/99 6,794 10.7452
10/29/99 716 10.8750
 
Item 11.  Contracts, Arrangements, Understandings or Relationships With Respect
to Issuer’s Securities

  The information set forth in the Proxy under the headings “SUMMARY,” “THE SPECIAL MEETING— Record Date; Voting at the Special Meeting,” “BACKGROUND OF THE MERGER,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER,” “DISSENTERS’ RIGHTS,” “PROVISIONS OF THE MERGER AGREEMENT” including specifically but not limited to “PROVISIONS OF THE MERGER AGREEMENT— Additional Agreements, — Shareholders Voting Agreement, —Kennedy’s Agreements” is incorporated herein by reference. The Merger Agreement attached as ANNEX A to the Proxy and the Shareholders Voting Agreement dated November 6, 1999 between Titan Holdings, Inc. and John C. Kennedy, Nancy G. Kennedy and the John C. and

6

  Nancy G. Kennedy Family Foundation attached as Exhibit 2 to the Current Report on Form 8-K filed by Autocam on November 9, 1999 are each incorporated herein by reference.

 
Item 12.  Present Intention and Recommendation of Certain Persons with Regard
to the Transaction

 (a)-(b)  The executive officers and the directors of Autocam have unanimously recommended that the shareholders of Autocam vote in favor of this Transaction and all (with the exception of Ms. Korth who owns no securities of the Company) intend to vote all of their shares of the Company in favor of the transaction. For the reasons, see the information set forth in the Proxy under the headings “SUMMARY— Recommendation of the Board of Directors, — Opinion of Autocam’s Financial Advisor, —Reasons for the Merger,” “BACKGROUND OF THE MERGER,” “REASONS FOR THE MERGER; RECOMMENDATION OF THE BOARD OF DIRECTORS,” and “OPINION OF AUTOCAM’S FINANCIAL ADVISOR” which is incorporated herein by reference.

Item 13.  Other Provisions of the Transaction

  (a)  The information set forth in the Proxy under the headings “QUESTIONS AND ANSWERS ABOUT THE MERGER TRANSACTION,” “SUMMARY— Dissenters’ Rights,” “THE SPECIAL MEETING— Record Date; Voting at the Special Meeting,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “DISSENTERS’ RIGHTS,” and “PROVISIONS OF THE MERGER AGREEMENT— Merger Consideration,” is incorporated herein by reference. The information set forth in ANNEX C to the Proxy is also incorporated herein by reference.
 
  (b)  The information set forth in the Proxy under the headings “WHO CAN HELP ANSWER YOUR QUESTIONS?,” “WHERE YOU CAN FIND MORE INFORMATION,” “SUMMARY— Dissenters’ Rights” and “DISSENTERS’ RIGHTS” is incorporated herein by reference. No provision has been made for shareholders to obtain counsel or appraisal services at Autocam’s expense.
 
  (c) Not applicable.

Item 14.  Financial Information

  (a) The information set forth in the Proxy under the headings “SUMMARY SELECTED FINANCIAL DATA” is incorporated herein by reference. The financial information set forth in Autocam’s Annual Report on Form 10-K for the fiscal year ended June 30, 1999 and in Autocam’s Form 10-Q for the fiscal quarter ended September 30, 1999 is also incorporated herein by reference.
 
  (b) Since Titan Acquisition is newly formed and has no operating history, no pro forma information giving effect to the Transaction is presented.

Item 15.  Persons and Assets Employed, Retained or Utilized

  (a)  The information set forth in the Proxy under the headings “SUMMARY— Interests of Certain Persons in the Merger Transaction, —Certain Conditions to the Merger,” “EFFECTS OF THE MERGER; MERGER CONSIDERATION,” “INTERESTS OF CERTAIN PERSONS IN THE MERGER,” “PROVISIONS OF THE MERGER AGREEMENT— Merger Consideration, —Conditions Precedent, —Kennedy’s Agreements” is incorporated herein by reference.

7

  (b)  No persons or classes of persons have been employed, retained or compensated by or on behalf of Autocam to make solicitations or recommendations in connection with the merger, except Raymond James & Associates, Inc., which was engaged as broker by an independent Special Committee of the Board of Directors of Autocam and which will be compensated by Autocam as described in the Proxy and Item 9 of this Schedule, and Corporate Investors Communications, Inc., which has been engaged to solicit proxies. The information set forth in the Proxy under the heading “BACKGROUND OF THE MERGER,” “OPINION OF AUTOCAM’S FINANCIAL ADVISOR” is incorporated herein by reference.

Item 16.  Additional Information

      All information set forth in the Schedule 14A and exhibits thereto which is not otherwise incorporated in this Statement by reference is hereby incorporated herein by reference.

Item 17.  Material to be Filed as Exhibits

  (a) Not applicable.

  (b)(1)   Fairness Opinion of Raymond James & Associates, Inc. (incorporated herein by reference to ANNEX B to the Schedule 14A filed by Autocam on November 9, 1999)
 
  (b)(2)   Raymond James & Associates, Inc. Special Committee and Board of Directors discussion materials.
 
  (c)(1)   Merger Agreement dated November 6, 1999 by and between Autocam, Titan Acquisition, Inc. and Titan Holdings, Inc. (incorporated herein by reference to ANNEX A to the Schedule 14A filed by Autocam on November 9, 1999).
 
  (c)(2)   Shareholders Voting Agreement dated November 6, 1999 between Titan Holdings, Inc. and John C. Kennedy, Nancy G. Kennedy and the John C. & Nancy G. Kennedy Family Foundation (incorporated herein by reference to Exhibit 2 to the Current Report on Form 8-K filed by Autocam on November 9, 1999).
 
  (c)(3)   Summary of Dissenters’ Rights (incorporated herein by reference to the Schedule  14A filed by Autocam on November 9, 1999 including under the heading “DISSENTERS’ RIGHTS” and by reference to ANNEX C to such Schedule 14A)

  (d) Schedule 14A (including all annexes and all exhibits to all appendixes thereto) filed by Autocam on November 9, 1999 is incorporated herein by reference
 
  (e) Summary of Dissenters’ Rights (incorporated herein by reference to the Schedule  14A filed by Autocam on November 9, 1999 including under the heading “DISSENTERS’ RIGHTS” and by reference to ANNEX C to such Schedule 14A)
 
  (f) Not Applicable

8

SIGNATURES

       After due inquiry, and to the best of its knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.

  AUTOCAM CORPORATION

  By:  /s/ WARREN A. VELTMAN
 
  Warren A. Veltman
  Chief Financial Officer

Dated: December 17, 1999

9

EXHIBIT INDEX

         
Exhibit
Number Description
(a) Not applicable.
(b)(1) Fairness Opinion of Raymond James & Associates, Inc. (incorporated herein by reference to ANNEX B to the Schedule 14A filed by Autocam on November 9, 1999)
(b)(2) Raymond James & Associates, Inc. Special Committee and Board of Directors discussion materials.
(c)(1) Merger Agreement dated November 6, 1999 by and between Autocam, Titan Acquisition, Inc. and Titan Holdings, Inc. (incorporated herein by reference to ANNEX A to the Schedule 14A filed by Autocam on November 9, 1999).
(c)(2) Shareholders Voting Agreement dated November 6, 1999 between Titan Holdings, Inc. and John C. Kennedy Nancy G. Kennedy, and the John C. & Nancy G. Kennedy Family Foundation (incorporated herein by reference to Exhibit 2 to the Current Report on Form 8-K filed by Autocam on November 9, 1999).
(c)(3) Summary of Dissenters’ Rights (incorporated herein by reference to the Schedule 14A filed by Autocam on November  9, 1999 including under the heading “DISSENTERS’ RIGHTS” and by reference to ANNEX C to such Schedule 14A)
(d) Schedule 14A (including all annexes and all exhibits to all appendixes thereto) filed by Autocam on November 9, 1999 is incorporated herein by reference
(e) Summary of Dissenters’ Rights (incorporated herein by reference to the Schedule 14A filed by Autocam on November  9, 1999 including under the heading “DISSENTERS’ RIGHTS” and by reference to ANNEX C to such Schedule 14A)
(f) Not Applicable

10 EX-99.(B)(2) 2 DISCUSSION MATERIALS 1 [AUTOCAM LOGO] -------------------------- BOARD OF DIRECTORS MEETING -------------------------- SEPTEMBER 7TH, 1999 RONEY & CO. 2 TABLE OF CONTENTS 3 - -------------------------------------------------------------------------------- AUTOCAM CORPORATION BOARD OF DIRECTORS MEETING SEPTEMBER 7, 1999 TABLE OF CONTENTS - -------------------------------------------------------------------------------- I. PREPARATION PHASE A. Table of Contents - May 14th, 1999, Preparation Meeting with Management B. Table of Contents - June 14th, 1999, Preparation Meeting with Special Committee C. Outline of Issues D. Autocam Offering Memorandum II. MARKETING PHASE A. Phase I Introductory Letter/Confidentiality Agreement B. Initial Contact List C. Phase I Activity Summary D. Phase II Letter and Summary Information Memorandum Sent E. Phase II Indications of Interest/Transaction Participant Details F. Summary of Phase II Indications of Interest G. Phase III Letter and Offering Memorandum Sent H. Phase III Indications of Interest I. Management Presentation Meetings J. Bidding Procedures Letter K. Summary of Final Offer Letters L. Merger Agreement Dated 1999 -------------, III. TRANSACTION PHASE A. Autocam Corporation 1. Stock Price/Volume Analysis 2. Discounted Cashflow Analysis 3. Comparable Company Analysis 4. Comparable Transactions Analysis 5. Premium Analysis B. Purchaser Information C. Roney & Co. Fairness Opinion Letter D. Roney & Co. Fairness Narrative E. Transaction Timeline - -------------------------------------------------------------------------------- RONEY & CO. PAGE 1 OF 1 INVESTMENT BANKING - -------------------------------------------------------------------------------- 4 I. PREPARATION PHASE 5 - -------------------------------------------------------------------------------- AUTOCAM CORPORATION BOARD OF DIRECTORS MEETING SEPTEMBER 7, 1999 TABLE OF CONTENTS - -------------------------------------------------------------------------------- I. PREPARATION PHASE A. Table of Contents - May 14th, 1999, Preparation Meeting with Management B. Table of Contents - June 14th, 1999, Preparation of Meeting with Special Committee C. Outline of Issues D. Autocam Offering Memorandum - -------------------------------------------------------------------------------- RONEY & CO. PAGE 1 OF 1 INVESTMENT BANKING - -------------------------------------------------------------------------------- 6 IA - PREPARATION PHASE Table of Contents 5/14/99 Meeting 7 - -------------------------------------------------------------------------------- PROJECT TITAN MANAGEMENT MEETING AGENDA MAY 14, 1999 - -------------------------------------------------------------------------------- I DISCUSS TALKING POINTS II. REVIEW MEMORANDUM III. REVIEW TIMELINE IV. REVIEW MERGER PARTNER LIST V. REVIEW DUE DILIGENCE ITEMS/RESPONSIBILITY - -------------------------------------------------------------------------------- RONEY&CO. PAGE 1 OF 1 INVESTMENT BANKING - -------------------------------------------------------------------------------- 8 IB - PREPARATION PHASE Table of Contents 6/14/99 Meeting 9 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PROJECT TITAN DISCUSSION WITH SPECIAL COMMITTEE AGENDA JUNE 14, 1999 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- I. SPECIAL COMMITTEE PRESENTATION II. MERGER BUYERS LIST A. Development -73 Financial / 15 Strategic B. Selection Criteria III. MERGER PROCESS UPDATE A. Status of Phase I Letter and Confidentiality Agreement 1. Implemented changes from Counsel 2. 44 Total / 32 Agreements executed / 12 with changes pending 3. Deadline - Monday June 7, 1999 B. Status of Phase II and Summary Information Memorandum 1. Faxed & Federal Expressed Tuesday June 8th, 1999 2. Deadline - Friday June 18, 1999 C. Status of Memorandum IV. SPECIAL COMMITTEE ITEMS A. Procedures, Controls B. Level of involvement moving forward C. Interview Process / Approval of Engagement Letter D. Communication Issues E. Other Items V. CONFIDENTIALITY/COMMUNICATION/PEOPLE ISSUES A. Pre-Transaction B. Pending Transaction C. Post-Transaction 1. Key People in the Transaction 2. Shareholders 3. Management/Employees 4. Position Statement 5. Customers VI. OTHER ISSUES - -------------------------------------------------------------------------------- RONEY&CO. PAGE 1 OF 1 INVESTMENT BANKING - -------------------------------------------------------------------------------- 10 IC - PREPARATION PHASE Outline of Issues 11 TRANSACTION ISSUES - -------------------------------------------------------------------------------- I. CONTINUITY OF BUSINESS A. Culture B. Leadership Issues C. People D. After Transaction Completion Structure Issues 1. Completely Separate Identities 2. Knowledge Transfer 3. Common Leadership 4. Crunch Help 5. Merge Selected Functions a) Presentation II. POSSIBLE COMBINATION BENEFITS A. Sales B. Purchasing C. Finance D. Accounting E. Union III. TRANSACTION STRUCTURE A. Valuation B. Approvals 1. Equity-Treatment (Board of Directors) 2. Senior-Treatment (Advisors) C. Assets vs. Stock 1. Tax Considerations 2. Legal Considerations 3. Seller of Assets a) Company b) Shareholders c) Senior Lender D. Type of Alternative Consideration 1. Cash 2. Stock 3. Alternative-Notes/Preferred Stock 4. Tax Status/Impact on Type of Consideration - -------------------------------------------------------------------------------- RONEY&CO. PAGE 1 OF 6 AUTOCAM - -------------------------------------------------------------------------------- 12 TRANSACTION ISSUES - -------------------------------------------------------------------------------- E. Benefits of Alternative Consideration 1. Taxation 2. Flexibility 3. Capital Conservation 4. Due Diligence Implications F. Negatives of Alternative Consideration 1. Value-Equity Risk/Return 2. Complexity 3. Organizational Flexibility a) Shift Capacity b) Shift People 4. Entity G. Equity Infusion 1. Option Structure 2. Equipment Collateral 3. Customer Follow-Thru IV. FINANCING A. Proforma Capital Structure of Entities 1. Standalone 2. Merged Entity B. Margin of Safety C. Timing V. DUE DILIGENCE A. Team 1. Legal-US 2. CPA-US B. Timing C. Disciplined Structured Approach D. Impact of Alternative Consideration 1. Reps/Warranties E. Financing Sources-Due Diligence 1. US 2. Other - -------------------------------------------------------------------------------- RONEY&CO. PAGE 2 OF 6 AUTOCAM - -------------------------------------------------------------------------------- 13 TRANSACTION ISSUES - -------------------------------------------------------------------------------- VI. OFFERING MEMORANDUM A. Content B. Availability C. Additional Information VII. LETTER OF INTENT A. Content 1. Confirms Valuation/Structure 2. Establishes Due Diligence Time Frame B. Timing VIII. Misc. Issues A. Hart Scott Rodino B. Compliance with Facility Closing Law IX. NEGOTIATION OF DEFINITIVE AGREEMENTS A. Content 1. Terms 2. Reps/Warranties 3. Indemnification B. Impact on Hart Scott Filing C. Responsibility-Drafting D. Timing X. CLOSING A. Timing B. Completion by C. Due Diligence Impact D. Influence of Financing Source - -------------------------------------------------------------------------------- RONEY&CO. PAGE 3 OF 6 AUTOCAM - -------------------------------------------------------------------------------- 14 TRANSACTION ISSUES - -------------------------------------------------------------------------------- XI. DUE DILIGENCE OVERVIEW / RESPONSIBILITY A. Facility & Operations Analysis by Location 1. Analysis of Customer Commitments a) Purchase Order for Current Products b) Commitments for Future Products c) Meet with Customers on the Viability of Continuing Operations as a Going Concern 2. Product by Product Analysis a) BOM review b) Labor Standard Actual c) Labor Standard Variances d) Raw Material Cost Review (Actual PO vs. Invoices) e) Pending Price Increases/Decreases f) Vendor Contracts 3. Physical Product/Raw Material Inventory a) Current (On Release) b) New Model (On Release or New Releases Pending) c) Obsolete (No Release) 4. Analysis of Process Changes a) Short Term b) Long Term 5. Analysis of Equipment a) Fair Market Value (Current Orders) b) New Product Value c) Forced Sale Value (No Current or New Model Orders) (1) Specialty Equipment (No Industry Value Dedicated Product Line) (2) General Use Equipment (Value to Industry) d) Overall Capacity (Utilization Study) e) New Equipment Commitments (1) Review Purchase Orders f) Proforma Review- Profit and Loss g) Location Review Schedule (1) Location Visitation - -------------------------------------------------------------------------------- RONEY&CO. PAGE 4 OF 6 AUTOCAM - -------------------------------------------------------------------------------- 15 TRANSACTION ISSUES - -------------------------------------------------------------------------------- B. Financial Review 1. Financial Review/Review and Analysis of Current Financial Data a) Balance Sheet 2. Income Statement a) Contribution Margin Approach b) Audited Financial Statements (1) Balance Sheet (2) YTD Financial Results (3) A/R Agings (4) A/P Agings (5) Status of Accrued Liabilities (6) Perform and Complete Audit Procedures Upon Presentation of Financial Review Materials (7) Auditor to Provide Schedule of Schedule (8) Auditor to Review Auditor Work Papers (9) Analysis and Appraisal of Book Value of Current Assets (A/R, Inventory, etc.) and all Property, Plant and Equipment C. Appraisal Information; Obtain Detailed Information and Description of all Assets 1. Obtain Current FMV and Forced Sale Value Appraisals for all Property, Plant and Equipment 2. Going Concern Valuation and Liquidation Valuation D. Debt Structure Analysis 1. Secured Debt a) Current Loan to Value Analysis b) Determine Participation Level of Accrued Debt and Meet with Secured Lender 2. Unsecured Debt a) Analysis of b) Treatment of 3. Determine Liquidation Value vs. Going Concern Value 4. Meet with Unsecured Creditors Committee - -------------------------------------------------------------------------------- RONEY&CO. PAGE 5 OF 6 AUTOCAM - -------------------------------------------------------------------------------- 16 TRANSACTION ISSUES - -------------------------------------------------------------------------------- E. Review and Analysis of Contingent Liabilities 1. Disclosure by Target 2. Pending and/or Threatened Litigation 3. Environmental Reports and Analysis 4. Testing Procedures 5. Worker's Compensation, Experience and Charges 6. Contracts Review 7. Lease Commitments 8. Pension Plans 9. Miscellaneous Commitments; Benefit Plan Analysis 10. Labor Agreements 11. Determine Required Reserves or Sinking Fund Requirements F. Analysis of Transaction Structure 1. Determine Possible Structure after Financial Review, Due Diligence and Obtaining Commitments from Customers, Secured Debt Holders and Unsecured Creditor Commitments 2. Obtain Financial Commitments a) Commitment Letter b) Finalize Loan Documents c) Title Survey d) Closing 3. Obtain Labor Union Approval 4. Obtain Customer Approval G. Negotiation of Proposed Transaction 1. Shareholder 2. Secured Debt 3. Unsecured Debt/Creditors Committee 4. Unions 5. Customers H. Prepare Closing Timetable - -------------------------------------------------------------------------------- RONEY&CO. PAGE 6 OF 6 AUTOCAM - -------------------------------------------------------------------------------- 17 ID - PREPARATION PHASE Autocam Offering Memorandum 18 II - MARKETING PHASE 19 - -------------------------------------------------------------------------------- AUTOCAM CORPORATION BOARD OF DIRECTORS MEETING SEPTEMBER 7, 1999 TABLE OF CONTENTS - -------------------------------------------------------------------------------- II. MARKETING PHASE A. Phase I Introductory Letter / Confidentiality Agreement - June 1, 1999 B. Initial Contact List C. Phase I Activity Summary D. Phase II Letter and Summary Information Memorandum Sent - June 8, 1999 E. Phase II Indications of Interest / Transaction Participant Details F. Phase III Letter and Offering Memorandum Sent (See ID) - June 29, 1999 G. Phase III Indications of Interest H. Management Presentation Meetings - August 3, 1999 - August 26, 1999 I. Bidding Procedures Letter - August 9, 1999 J. Summary of Final Offer Letters - August 27, 1999 K. Merger Agreement Dated , 1999 - -------------------------------------------------------------------------------- RONEY&CO. PAGE 1 OF 1 INVESTMENT BANKING - -------------------------------------------------------------------------------- 20 IIA - MARKETING PHASE Phase I Introductory Letter/ Confidentiality Agreement 21 - -------------------------------------------------------------------------------- PHASE I INTRODUCTORY LETTER - ------------------------------------------------------------------------------- 22 [RONEY & CO. LETTERHEAD] June 1, 1999 Salutation ContactFirstName ContactLastName Title Company_Name Address Address1 City, StateorProvince PostalCode PRIVATE & CONFIDENTIAL Dear Salutation ContactLastName: Roney & Co. ("Roney") has been retained on an exclusive basis to manage a potential business combination of our client's business ("Project Titan"). Project Titan (hereinafter the "Company") DESIGNS AND MANUFACTURES HIGH VOLUME PRECISION MACHINED EXTREMELY CLOSE TOLERANCE, SPECIALTY METAL ALLOY COMPONENTS sold primarily to the automotive and medical device industries. The following information is intended to provide an overview of the business of the Company to those companies ("Transaction Participants") that may be interested in a business combination with the Company. REVENUES: Sales for the twelve months ended June 30th are as follows: ($000'S) ============================================
1998 1999F 2000F ---- ----- ----- Sales $180,601 $200,459 $203,577 ============================================
Forecasted sales represent only sales supported by a Purchase Order. The Company's operating margins are consistent with industry standards. PRODUCTS/MANUFACTURING PROCESSES: The Company designs and manufactures high volume precision machined extremely close tolerance specialty metal alloy components sold primarily to the automotive and medical device industries. In the automotive industry, the Company's components are used in fuel system, power steering system and braking system applications. In the medical products industry, the Company's products are used to make stents used in surgical applications and to make surgical tools used in orthopedic and ophthalmic applications. FACILITIES: The Company has eleven manufacturing facilities, including six in the United States, two in Europe and three in South America. CUSTOMERS: The Company's customers/products are industry and technology leaders in the automotive and medical device industries. EMPLOYEES: The Company employs over 1,800 people. 23 - -------------------------------------------------------------------------------- CONFIDENTIALITY AGREEMENT - -------------------------------------------------------------------------------- 24 CONFIDENTIALITY AGREEMENT June 1, 1999 <> <> <> <> <<Company_Name>> <<Address>> <<Address1>> <<City,>> <<StateorProvince>> <<PostalCode>> PRIVATE & CONFIDENTIAL Dear <<Salutation>> <<ContactLastName>>: In order to allow you to evaluate the possible business combination (the "Business Combination") with Project Titan and its affiliates and subsidiaries, a designer and manufacturer of high volume precision machined extremely close tolerance specialty metal alloy components (hereinafter the "Company"), you have requested certain information regarding the Company. For purposes of this Confidentiality Agreement, Business Combination shall include any recapitalization, acquisition, merger or other transaction involving any of the Company, whereby any common stock or assets of the Company is exchanged. As a condition to your being furnished such information, you agree: a) to treat all information concerning the Company (the "Proprietary Information") which is furnished to you by us or our respective directors, members, officers, employees, agents, advisors and any other persons, whether before or after the date hereof, and regardless of the manner in which it is furnished, in accordance with the terms of this letter; and b) to take or abstain from taking certain other actions as herein set forth. Unless otherwise agreed to in writing by us, you agree: c) except as required by law, to keep all Proprietary Information confidential and not to disclose or reveal any Proprietary Information to any person other than those employed by you or engaged on your behalf who are actively and directly participating in the evaluation of the Business Combination or who otherwise need to know the Proprietary Information for the purpose of evaluating the Business Combination and to cause those persons to observe the terms of this letter agreement; and d) not to use the Proprietary Information for any purpose other than in connection with the evaluation and consummation of the Business Combination. You will be responsible for any breach of the terms hereunder by you or the persons entitled to such information as referred to herein. In the event that you are required by applicable law or regulation or by legal process to disclose any Proprietary Information, you agree that you will provide us with prompt notice of such requirement to enable us to seek a protective order or other appropriate remedy. In addition, unless otherwise required by law, neither you nor your representatives will, without our prior written consent, disclose to any person (other than those actively and directly participating in the Business Combination or your proposed financing thereof) any information about the Business Combination, or the terms, conditions or other facts relating thereto, including the fact that discussions are taking place with respect thereto or the status thereof, or the fact that the Proprietary Information has been made available to you. <PAGE> 25 June 1, 1999 Page 2 of 3 If we determine that we do not wish to proceed with the Business Combination, we will promptly advise you of that decision. In that case, or in the event that the Business Combination is not consummated by you, you will, at our request, either destroy or promptly deliver to us all of the Proprietary Information, including all copies, reproductions, summaries, analyses or extracts thereof or based thereon, in your possession or in the possession of any of your representatives, and certify to us that you have done so. Although the Proprietary Information contains information which we believe to be relevant for the purpose of your evaluation of the Business Combination, we do not make any representation or warranty as to the accuracy or completeness of the Proprietary Information. Neither we, our affiliates, nor any of our respective representatives shall have any liability to you or any of your representatives relating to or arising from any use of the Proprietary Information. You acknowledge that we and our affiliates will suffer irreparable injury if you or any of your representatives breach or threaten to breach any of the provisions of this letter agreement and agree that in such event we shall be entitled, without prejudice to the rights and remedies otherwise available to us, to equitable relief, including an injunction to enjoin any breach or threatened breach or an order to enforce specific performance of any provision. It is further understood and agreed that no delay or failure by us in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege thereunder. Without the prior written consent of the Company, you further agree that you will not for a period of two years from the date hereof, directly or indirectly, solicit for employment or employ any person who is now employed by the Company in a managerial, executive or technical/machine operators position. You agree that, for a period of three years from the date of this agreement, unless such shall have been specifically invited in writing by the Company, neither you nor any of your affiliates (as such term is defined under the Securities Exchange Act of 1934, as amended (the "1934 Act") or representatives will in any manner, directly or indirectly, (a) effect or seek, offer or propose (whether publicly or otherwise) to effect, or cause or participate in or in any way assist any other person to effect or seek, offer or propose (whether publicly or otherwise) to effect or participate in, (i) any acquisition of any securities (or beneficial ownership thereof) or assets of the Company; (ii) any tender or exchange offer, merger or other business combination involving the Company or any of its subsidiaries; (iii) any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to the Company; or (iv) any "solicitation" of "proxies" (as such terms are used in the proxy rules of the Securities and Exchange Commission) or consents to vote any voting securities of the Company; (b) form, join or in any way participate in a "group" (as defined under the 1934 Act); (c) otherwise act, alone or in concert with others, to seek to control or influence the management, Board of Directors or policies of the Company; (d) take any action which might force the Company to make a public announcement regarding any of the types of matters set forth in (a) above; or (e) enter into any discussions or arrangements with any third party with respect to any of the foregoing. This letter agreement is signed in the state of Michigan, shall be governed by and construed in accordance with the laws of the State of Michigan and each party agrees to the exclusive jurisdiction of the court located in the County of Kent, Michigan for any action, suit or proceeding arising out of or relating to thisa agreement and agree not to commence or attempt to remove any action other than in such court. This letter agreement shall supersede any and all prior agreements and understandings relating to the Proprietary Information. No amendment or waiver of any provision of this letter agreement shall be effective unless the same shall be in writing and signed by us. <PAGE> 26 June 1, 1999 Page 3 of 3 Except as advised by outside counsel in writing as required by applicable law, without our prior written consent, until such time as a letter of intent, or similar document, has been entered into, you will not and will direct your representatives not to disclose to any person either the fact that any investigations, discussions or negotiations are taking place concerning a possible Business Combination between the Company and you, or any of the terms, conditions or other facts with respect to any such possible Business Combination, including the status hereof. For purposes of this letter, the term "Proprietary Information" does not include information which you can demonstrate (i) is or becomes generally available to the public other than as a result of a disclosure by you or your representatives; (ii) was available to you on a non-confidential basis prior to its disclosure by us; or (iii) becomes available to you on a non-confidential basis from a source other than us, who is not otherwise bound by a confidentiality agreement with us or our Representatives or is not otherwise prohibited from disclosing such information. As used in this letter, the term "person" shall be broadly interpreted to include, without limitation, any corporation, company, partnership and individual. Please confirm your agreement with the foregoing by signing and returning this Confidentiality Agreement to: Mr. C. Kirk Haggarty Director Roney & Co. One Griswold Detroit, MI 48226 Tel: (313) 225-5748 Fax: (313) 963-2303 Very truly yours, RONEY & CO. C. Kirk Haggarty C. Kirk Haggarty Director AGREED AND ACCEPTED this ______ day of ________, 1999. By: ________________________________________________ Title: _____________________________________________ Company Name: ______________________________________ Address: ___________________________________________ Phone Number: _______________________________________ Fax Number: ________________________________________ E-Mail Address: ____________________________________ <PAGE> 27 IIB - MARKETING PHASE Initial Contact List <PAGE> 28 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST - -------------------------------------------------------------------------------- (73) FINANCIAL BUYER 1 COMPANY NAME: Advent International CONTACT NAME: Mr. Scott Castle CONTACT TITLE: Associate ADDRESS: 75 State Street Boston, MA 02109 PHONE NUMBER: (617) 951-9794 FAX NUMBER: 617-951-0736 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 2 COMPANY NAME: AEA Investors Inc. CONTACT NAME: Mr. Kevin J. Kruse CONTACT TITLE: Vice President ADDRESS: 65 East 55th Street 27th Floor New York, NY 10022 PHONE NUMBER: (212) 644-5900 FAX NUMBER: 212-702-0518 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 3 COMPANY NAME: American Industrial Partners CONTACT NAME: Mr. Ken Diekroeger CONTACT TITLE: Managing Director ADDRESS: One Maritime Plaza Suite 2525 San Francisco, CA 94111 PHONE NUMBER: (415) 788-7354 FAX NUMBER: 415-788-5302 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 4 COMPANY NAME: Ampton Investments Inc. CONTACT NAME: Mr. Elliott Pratt CONTACT TITLE: Vice President ADDRESS: 399 Park Avenue 38th Floor New York, NY 10022 PHONE NUMBER: (212) 319-9404 FAX NUMBER: (212) 593-0140 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 5 COMPANY NAME: Apollo Management IV, L.P. CONTACT NAME: Mr. Darrin Cozzolino CONTACT TITLE: ADDRESS: 1301 Avenue of the Americas 38th Floor New York, NY 10019 PHONE NUMBER: (212) 515-3200 FAX NUMBER: 212-515-3263 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 6 COMPANY NAME: Aurora Capital Group CONTACT NAME: Mr. John Mapes CONTACT TITLE: Principal ADDRESS: 10877 Wilshire Blvd., Suite 2100 Los Angeles, CA 90024 PHONE NUMBER: (310) 551-0101 FAX NUMBER: (310) 227-5591 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 1 of 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 29 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST - -------------------------------------------------------------------------------- 7 COMPANY NAME: B.G. Affiliates, LLC CONTACT NAME: Mr. John Sweeney CONTACT TITLE: Vice President ADDRESS: 470 Atlantic Avenue Boston, MA 02210 PHONE NUMBER: (617) 556-1495 FAX NUMBER: (617) 423-8916 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 8 COMPANY NAME: Bain Capital, Inc. CONTACT NAME: Mr. Ronald Mika CONTACT TITLE: Managing Director ADDRESS: Two Copley Place Boston, MA 02116 PHONE NUMBER: (617) 572-3225 FAX NUMBER: 617-572-3274 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 9 COMPANY NAME: Beacon Group, LLC CONTACT NAME: Mr. Stephen P. Hines CONTACT TITLE: Managing Director ADDRESS: 399 Park Avenue 17th Floor New York, NY 10022 PHONE NUMBER: (212) 339-9100 FAX NUMBER: (212) 339-9109 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 10 COMPANY NAME: Berkshire Partners, LLC CONTACT NAME: Ms. Jeanine Neumann CONTACT TITLE: Director - Client Services ADDRESS: One Boston Place Suite 3300 Boston, MA 02108 PHONE NUMBER: (617) 227-0050 FAX NUMBER: 617-227-6105 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 11 COMPANY NAME: Bessemer Partners & Co. CONTACT NAME: Mr. Adam P. Godfrey CONTACT TITLE: President ADDRESS: 630 Fifth Avenue 39th Floor New York, NY 10111 PHONE NUMBER: (212) 708-9158 FAX NUMBER: 212-969-9032 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 12 COMPANY NAME: Blackstone Group CONTACT NAME: Mr. Bret Pearlman CONTACT TITLE: ADDRESS: 345 Park Avenue 31st Floor New York, NY 10154 PHONE NUMBER: (212) 583-5888 FAX NUMBER: (212) 583-5716 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 2 of 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 30 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST - -------------------------------------------------------------------------------- 13 COMPANY NAME: Brockway Moran & Partners CONTACT NAME: Ms. Kathy J. Mankin CONTACT TITLE: Partner ADDRESS: 225 NE Mizner Boulevard Seventh Floor Boca Raton, FL 33432 PHONE NUMBER: (561) 750-2000 FAX NUMBER: (561) 750-2001 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 14 COMPANY NAME: Bruckmann, Rosser, Sherrill & Co. CONTACT NAME: Mr. Bruce Bruckmann CONTACT TITLE: Managing Director ADDRESS: 126 E. 56th Street 29th Floor New York, NY 10022 PHONE NUMBER: (212) 521-3724 FAX NUMBER: (212) 521-3799 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 15 COMPANY NAME: Butler Capital Corp. CONTACT NAME: Mr. David Barr CONTACT TITLE: Managing Director ADDRESS: 767 Fifth Avenue New York, NY 10153 PHONE NUMBER: (212) 980-0606 FAX NUMBER: (212) 759-0876 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 16 COMPANY NAME: Carreras, Kestner & Co., LLC CONTACT NAME: Mr. Joseph W. Carreras CONTACT TITLE: Chairman and CEO ADDRESS: 50 Public Square, 32nd Floor Cleveland, OH 44113 PHONE NUMBER: (216) 574-4968 FAX NUMBER: 216-344-7631 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 17 COMPANY NAME: Castle Harlan, Inc. CONTACT NAME: Mr. Howard Weiss CONTACT TITLE: Chief Financial Officer ADDRESS: 150 E. 58th Street 37th Floor New York, NY 10155 PHONE NUMBER: (212) 644-8600 FAX NUMBER: 212-759-0486 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 18 COMPANY NAME: Centre Partners Management, LLC CONTACT NAME: Mr. Scott Perekslis CONTACT TITLE: Principal ADDRESS: 30 Rockefeller Plaza Suite 5050 New York, NY 10020 PHONE NUMBER: (212) 332-5800 FAX NUMBER: (212) 332-5801 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 3 of 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 31 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST ================================================================================ 19 COMPANY NAME: Charter Oak Capital Partners, L.P. CONTACT NAME: Mr. Robert Sarrazin CONTACT TITLE: Vice President ADDRESS: 10 Wright Street Westport, CT 06880 PHONE NUMBER: (203) 221-4752 FAX NUMBER: 203-222-2720 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 20 COMPANY NAME: Charterhouse Group International Inc. CONTACT NAME: Ms. Denise Merkura CONTACT TITLE: Director ADDRESS: 535 Madison Avenue 28th Floor New York, NY 10022-4299 PHONE NUMBER: (212) 421-3214 FAX NUMBER: (212) 750-9704 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 21 COMPANY NAME: Chase Capital Partners CONTACT NAME: Mr. Donald Hoffman CONTACT TITLE: Principal ADDRESS: 380 Madison Avenue 12th Floor New York, NY 10017 PHONE NUMBER: (212) 622-3066 FAX NUMBER: (212) 622-3755 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 22 COMPANY NAME: Citicorp Venture Capital CONTACT NAME: Mr. Richard Cashen CONTACT TITLE: President ADDRESS: 399 Park Avenue 14th Floor New York, NY 10043 PHONE NUMBER: (212) 559-1129 FAX NUMBER: 212-888-2940 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 23 COMPANY NAME: Clayton, Dubilier & Rice, Inc. CONTACT NAME: Mr. Don Gogel CONTACT TITLE: Chief Executive Officer ADDRESS: 375 Park Avenue 18th Floor New York, NY 10152-0002 PHONE NUMBER: (212) 407-5200 FAX NUMBER: (212) 893-7061 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 24 COMPANY NAME: Cornerstone Equity Investors, LLC CONTACT NAME: Mr. John A. (Tony) Downer CONTACT TITLE: Managing Director ADDRESS: 717 Fifth Avenue New York, NY 10022 PHONE NUMBER: (212) 207-2367 FAX NUMBER: 212-826-6798 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 4 of 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 32 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST ================================================================================ 25 COMPANY NAME: Cortec Management LLC CONTACT NAME: Mr. David L. Schnadig CONTACT TITLE: Managing Director ADDRESS: 200 Park Avenue 20th Floor New York, NY 10166 PHONE NUMBER: (212) 916-0171 FAX NUMBER: 212-682-4195 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 26 COMPANY NAME: Cravey, Green & Wahlen Inc. CONTACT NAME: Mr. Edwin A. Wahlen, Jr. CONTACT TITLE: Partner ADDRESS: Twelve Piedmont Center Suite 210 Atlanta, GA 30305 PHONE NUMBER: (404) 816-3255 FAX NUMBER: 404-816-3258 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 27 COMPANY NAME: Cypress Advisors, LP CONTACT NAME: Mr. Michael Finley CONTACT TITLE: Director ADDRESS: 65 East 55th Street 19th Floor New York, NY 10022 PHONE NUMBER: (212) 705-0156 FAX NUMBER: (212) 705-0199 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 28 COMPANY NAME: DLJ Merchant Banking II, Inc. CONTACT NAME: Mr. Keith Palumbo CONTACT TITLE: Vice President ADDRESS: 277 Park Avenue 19th Floor New York, NY 10172 PHONE NUMBER: (212) 892-7085 FAX NUMBER: 212-892-7696 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 29 COMPANY NAME: Doughty Hanson & Company CONTACT NAME: Mr. Nigel E. Doughty CONTACT TITLE: Partner ADDRESS: Times Place 45 Pall Mall London, UK SW1Y5JG PHONE NUMBER: 011-44-171-663-9300 FAX NUMBER: 011-44-171-663-9350 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 30 COMPANY NAME: Dubilier & Company CONTACT NAME: Mr. Michael Dubilier CONTACT TITLE: Partner ADDRESS: 64 W. 21st Street New York, NY 10010 PHONE NUMBER: (212) 727-2327 FAX NUMBER: 212-727-3349 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 5 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 33 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11,1999 MARKETING LIST ================================================================================ 31 COMPANY NAME: E.M. Warburg, Pincus & Co., LLC CONTACT NAME: Mr. Jonathan Kane CONTACT TITLE: Vice President ADDRESS: 466 Lexington Avenue 10th Floor New York, NY 10017 PHONE NUMBER: (212) 878-0620 FAX NUMBER: 212-716-5005 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 32 COMPANY NAME: Evergreen Capital CONTACT NAME: Mr. Richard Y. Smith CONTACT TITLE: President ADDRESS: 150 East 58th Street New York, NY 10155-0189 PHONE NUMBER: (212) 813-0758 FAX NUMBER: (212) 750-6501 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 33 COMPANY NAME: First Atlantic Capital, Ltd. CONTACT NAME: Mr. Joseph Levy CONTACT TITLE: Vice President ADDRESS: 135 East 57th Street 29th Floor New York, NY 10022 PHONE NUMBER: (212) 207-0300 FAX NUMBER: 212-207-8842 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 34 COMPANY NAME: Frontenac Company CONTACT NAME: Mr. Roger McKiniery CONTACT TITLE: Director ADDRESS: 135 South LaSalle Street Suite 3800 Chicago, IL 60603 PHONE NUMBER: (312) 368-0044 FAX NUMBER: (312) 368-9520 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 35 COMPANY NAME: Golder Hawn Johnson & Morrison Inc. CONTACT NAME: Mr. Ed Riecklman CONTACT TITLE: Managing Director ADDRESS: 5250 Norwest Center 90 South Seventh St. Minneapolis, MN 55402-4123 PHONE NUMBER: (612) 338-5912 FAX NUMBER: (612) 338-2860 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 36 COMPANY NAME: GTCR Golder Rauner, LLC CONTACT NAME: Mr. Greg Huey CONTACT TITLE: Analyst ADDRESS: 6100 Sears Tower 233 South Wacker Drive Chicago, IL 60606 PHONE NUMBER: (312) 382-2223 FAX NUMBER: 312-382-2201 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 6 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 34 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST ================================================================================ 37 COMPANY NAME: Haas, Wheat & Partners CONTACT NAME: Mr. Wyche Walton CONTACT TITLE: Senior Vice President ADDRESS: 300 Cresent Court Suite 1700 Dallas, TX 75201 PHONE NUMBER: (214) 871-8303 FAX NUMBER: (214) 871-8317 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 38 COMPANY NAME: Harbour Group Ltd. CONTACT NAME: Mr. Mark Leeker CONTACT TITLE: Director of Corporate Development ADDRESS: 7701 Forsyth Blvd. Suite 600 St. Louis, MO 63105 PHONE NUMBER: (314) 727-5550 FAX NUMBER: 314-727-9912 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 39 COMPANY NAME: Harvest Partners, Inc. CONTACT NAME: Mr. William J. Kane CONTACT TITLE: General Partner ADDRESS: 280 Park Avenue 33rd Floor New York, NY 10017 PHONE NUMBER: (212) 599-6300 FAX NUMBER: 212-812-0100 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 40 COMPANY NAME: Hicks, Muse, Tate & Furst, Inc. CONTACT NAME: Mr. Dan Blanks CONTACT TITLE: Partner ADDRESS: 200 Crescent Court Suite 1600 Dallas, TX 75201 PHONE NUMBER: (214) 740-7399 FAX NUMBER: (214) 720-7888 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 41 COMPANY NAME: Industrial Growth Partners CONTACT NAME: Mr. Gottfried P. Tittiger CONTACT TITLE: ADDRESS: 100 Spear Street Suite 310 San Francisco, CA 94105 PHONE NUMBER: (415) 882-4550 FAX NUMBER: (415) 882-4551 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 42 COMPANY NAME: J.F. Lehman & Company CONTACT NAME: Mr. Stephen Brooks CONTACT TITLE: Associate ADDRESS: 450 Park Avenue 6th Floor New York, NY 10022 PHONE NUMBER: (212) 634-1157 FAX NUMBER: (212) 634-1162 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- ================================================================================ RONEY & CO. PAGE 7 of 16 INVESTMENT BANKING ================================================================================ <PAGE> 35 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST ================================================================================ 43 COMPANY NAME: Jordan Company CONTACT NAME: Mr. David W. Zalaznick CONTACT TITLE: Managing Partner ADDRESS: 9 West 57th Street Suite 4000 New York, NY 10019 PHONE NUMBER: (212) 572-0800 FAX NUMBER: (212) 755-5263 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 44 COMPANY NAME: Joseph, Littlejohn & Levy CONTACT NAME: Mr. Jeffrey Lightcap CONTACT TITLE: Principal ADDRESS: 450 Lexington Avenue Suite 3350 New York, NY 10017 PHONE NUMBER: (212) 286-8600 FAX NUMBER: (212) 286-8626 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 45 COMPANY NAME: Kelso & Company CONTACT NAME: Mr. James J. Connors, II CONTACT TITLE: Vice President and General Counsel ADDRESS: 320 Park Avenue 24th Floor New York, NY 10022 PHONE NUMBER: (212) 751-3939 FAX NUMBER: 212-223-2379 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 46 COMPANY NAME: Kirtland Capital Partners CONTACT NAME: Mr. Michael DeGrandis CONTACT TITLE: Partner ADDRESS: 2550 SOM Center Road, Suite 105 Willoughby Hills, OH 44094 PHONE NUMBER: (440) 585-9010 FAX NUMBER: 440-585-9699 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 47 COMPANY NAME: Kohlberg Kravis Roberts & Company CONTACT NAME: Mr. Thomas Uger CONTACT TITLE: Analyst ADDRESS: 9 West 57th Street Suite 4200 New York, NY 10019 PHONE NUMBER: (212) 230-9748 FAX NUMBER: (212) 750-0003 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 48 COMPANY NAME: Lehman Brothers Merchant Banking CONTACT NAME: Mr. Mark MacTavish CONTACT TITLE: Managing Director ADDRESS: 200 Vesey Street New York, NY 10285 PHONE NUMBER: (212) 526-4699 FAX NUMBER: 212-526-3836 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 8 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 36 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST - -------------------------------------------------------------------------------- 49 COMPANY NAME: Leonard Green & Partners CONTACT NAME: Mr. Gregory J. Annick CONTACT TITLE: Vice President ADDRESS: 11111 Santa Monica Boulevard Suite 2000 Los Angeles, CA 90025 PHONE NUMBER: (310) 954-0430 FAX NUMBER: 310-954-0404 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 50 COMPANY NAME: Liberty Partners CONTACT NAME: Mr. Carl Ring CONTACT TITLE: Managing Director ADDRESS: 1177 Ave of the Americas 34th Floor New York, NY 10036 PHONE NUMBER: (212) 354-7676 FAX NUMBER: (212) 354-0336 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 51 COMPANY NAME: Linsalata Capital Partners CONTACT NAME: Mr. Donald Molten CONTACT TITLE: Senior Vice President ADDRESS: 5900 Landerbrook Drive Suite 280 Mayfield Heights, OH 44124 PHONE NUMBER: (440) 684-1400 FAX NUMBER: (440) 684-0984 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 52 COMPANY NAME: Long Horizons Group CONTACT NAME: Mr. James J. Pike CONTACT TITLE: President and Chief Executive Officer ADDRESS: 20500 Civic Center Drive,Suite 3100 Southfield, MI 48076 PHONE NUMBER: (248) 204-2375 FAX NUMBER: (248) 204-2361 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 53 COMPANY NAME: Madison Dearborn Partners, Inc. CONTACT NAME: Mr. Nick Alexos CONTACT TITLE: Managing Director ADDRESS: Three First National Plaza Suite 3800 Chicago, IL 60602 PHONE NUMBER: (312) 895-1260 FAX NUMBER: (312) 895-1256 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 54 COMPANY NAME: Metal Forming Technologies, Inc. CONTACT NAME: Mr. David W. Riesmeyer CONTACT TITLE: Executive Vice President & CFO ADDRESS: 150 N. Wacker Drive Suite 1870 Chicago, IL 60606 PHONE NUMBER: (312) 782-9655 FAX NUMBER: 312-782-9644 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 9 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 37 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST - -------------------------------------------------------------------------------- 55 COMPANY NAME: Morgan Stanley Capital Partners CONTACT NAME: Mr. Eric Fry CONTACT TITLE: Vice President ADDRESS: 1221 Avenue of the Americas 33rd Floor New York, NY 10020 PHONE NUMBER: (212) 762-7042 FAX NUMBER: (212) 762-7987 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 56 COMPANY NAME: Odyssey Investment Partners, LLC CONTACT NAME: Mr. Brian Kwait CONTACT TITLE: Managing Principal ADDRESS: 280 Park Avenue 38th Floor New York, NY 10017 PHONE NUMBER: (212) 351-7970 FAX NUMBER: 212-351-7925 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 57 COMPANY NAME: Palladium Equity Partners, LLC CONTACT NAME: Mr. Timothy Mayhew CONTACT TITLE: Principal ADDRESS: 1270 Avenue of Americas Suite 2200 New York, NY 10020 PHONE NUMBER: (212) 218-5150 FAX NUMBER: (212) 218-5155 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 58 COMPANY NAME: Penske Capital Partners CONTACT NAME: Mr. Steven Carrel CONTACT TITLE: Associate ADDRESS: 399 Park Avenue, 36th Floor New York, NY 10022 PHONE NUMBER: (212) 207-9643 FAX NUMBER: 212-207-9653 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 59 COMPANY NAME: Questor Management Company CONTACT NAME: Mr. Jason Runco CONTACT TITLE: Associate ADDRESS: 4000 Town Center Suite 530 Southfield, MI 48075 PHONE NUMBER: (248) 213-2222 FAX NUMBER: 248-213-2215 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 60 COMPANY NAME: Recovery Equity Partners CONTACT NAME: Mr. Jeffrey Lipkin CONTACT TITLE: General Partner ADDRESS: 901 Mariner's Island Blvd., Suite 465 San Mateo, CA 94404-1592 PHONE NUMBER: (650) 578-9752 FAX NUMBER: (650) 578-9842 EMPLOYEES: PARTS/PROCESSES: SOURCE: Financial Buyers - -------------------------------------------------------------------------------- RONEY & CO. PAGE 10 of 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 38 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST - -------------------------------------------------------------------------------- 61 COMPANY NAME: Saunders Karp & Megrue, L.P. CONTACT NAME: Mr. John Clark CONTACT TITLE: Partner ADDRESS: 667 Madison Avenue 21st Floor New York, NY 10021 PHONE NUMBER: (212) 303-6622 FAX NUMBER: 212-755-1624 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 62 COMPANY NAME: Stonington Partners, Inc. CONTACT NAME: Ms. Judith A. Witterschein CONTACT TITLE: Vice President & Corporate Counsel ADDRESS: 767 5th Avenue 48th Floor New York, NY 10153 PHONE NUMBER: (212) 339-8536 FAX NUMBER: 212-339-8585 EMPLOYEES: PARTS/PROCESSES: SOURCE: - ------------------------------------------------------------------------------- 63 COMPANY NAME: Texas Pacific Group, Inc. CONTACT NAME: Mr. Jeff Shaw CONTACT TITLE: Director ADDRESS: 345 California Street Suite 3300 San Francisco, CA 94104 PHONE NUMBER: (415) 743-1500 FAX NUMBER: (415) 743-1501 EMPLOYEES: PARTS/PROCESSES: SOURCE: - ------------------------------------------------------------------------------- 64 COMPANY NAME: Thayer Capital Partners CONTACT NAME: Mr. Doug Gilbert CONTACT TITLE: Vice President ADDRESS: 1455 Pennsylvania Avenue, NW Suite 350 Washington, DC 20004 PHONE NUMBER: (202) 371-0150 FAX NUMBER: (202) 371-0391 EMPLOYEES: PARTS/PROCESSES: SOURCE: - ------------------------------------------------------------------------------- 65 COMPANY NAME: The Carlyle Group CONTACT NAME: Mr. Raymond Whiteman CONTACT TITLE: Principal ADDRESS: 1001 Pennsylvania Ave., NW Washington, DC 20004 PHONE NUMBER: (202) 347-2626 FAX NUMBER: 202-347-9250 EMPLOYEES: PARTS/PROCESSES: SOURCE: - ------------------------------------------------------------------------------- 66 COMPANY NAME: The Riverside Company CONTACT NAME: Mr. Alan J. Walther CONTACT TITLE: Partner ADDRESS: 630 Fifth Avenue, Suite 1530 New York, NY 10111 PHONE NUMBER: 212-265-6408 FAX NUMBER: 212-265-6478 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 11 of 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 39 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST - -------------------------------------------------------------------------------- 67 COMPANY NAME: The Veritas Capital Fund L.P. CONTACT NAME: Mr. Thomas J. Campbell CONTACT TITLE: Partner ADDRESS: 660 Madison Avenue New York, NY 10021 PHONE NUMBER: (212) 688-0020 FAX NUMBER: 212-688-9411 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 68 COMPANY NAME: Thomas H. Lee Company CONTACT NAME: Mr. Seth Lawry CONTACT TITLE: Managing Director ADDRESS: 75 State Street 26th Floor Boston, MA 02109 PHONE NUMBER: (617) 227-1050 FAX NUMBER: 617-227-3514 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 69 COMPANY NAME: TSG Capital Group, LLC CONTACT NAME: Mr. William Kemp CONTACT TITLE: Partner ADDRESS: 177 Broad Street 12th Floor Stamford, CT 06901 PHONE NUMBER: (203) 406-1500 FAX NUMBER: (203) 406-1590 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 70 COMPANY NAME: Weiss, Peck, & Greer CONTACT NAME: Ms. Tania Cochran CONTACT TITLE: Associate ADDRESS: One New York Plaza 30th Floor New York, NY 10004 PHONE NUMBER: (212) 908-9767 FAX NUMBER: (212) 908-0112 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 71 COMPANY NAME: Wind Point Partners CONTACT NAME: Mr. Robert L. Cummings CONTACT TITLE: Managing Director ADDRESS: One Towne Square, Suite 780 Southfield, MI 48076 PHONE NUMBER: 248-945-7206 FAX NUMBER: 248-945-7220 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 72 COMPANY NAME: Windward Capital Partners CONTACT NAME: Mr. Gary L. Swenson CONTACT TITLE: President and Senior Managing Director ADDRESS: 12 East 49th Street 30th Floor New York, NY 10017 PHONE NUMBER: (212) 382-6510 FAX NUMBER: (212) 382-6534 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 12 of 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 40 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST - -------------------------------------------------------------------------------- 73 COMPANY NAME: Wingate Partners, L.P. CONTACT NAME: Mr. Jay I. (Bud) Applebaum CONTACT TITLE: Principal ADDRESS: 750 North St. Paul Suite 1200 Dallas, TX 75201 PHONE NUMBER: (214) 720-1313 FAX NUMBER: 214-871-8799 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 13 of 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 41 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST - -------------------------------------------------------------------------------- ( 15 ) STRATEGIC BUYER 1 COMPANY NAME: American Axle & Manufacturing Holdings, Inc. CONTACT NAME: Mr. Robert Fair CONTACT TITLE: Director of Strategic Planning ADDRESS: 1840 Holbrook Avenue Detroit, MI 48212-3488 PHONE NUMBER: (313) 974-2600 FAX NUMBER: (313) 974-3090 EMPLOYEES: 8500 PARTS/PROCESSES: SOURCE: SAE Directory - -------------------------------------------------------------------------------- 2 COMPANY NAME: Black & Decker Corporation, The CONTACT NAME: Mr. Thomas M. Schoewe CONTACT TITLE: Chief Financial Officer ADDRESS: 701 E. Joppa Rd. Towson, MD 21286 PHONE NUMBER: (410) 716-3900 FAX NUMBER: (410) 716-2933 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 3 COMPANY NAME: Delco Remy International, Inc. CONTACT NAME: Mr. Thomas Snyder CONTACT TITLE: President & CEO ADDRESS: 2902 Enterprise Drive Anderson, IN 46013 PHONE NUMBER: (765) 778-6499 FAX NUMBER: (765) 778-6515 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 4 COMPANY NAME: DT Industries, Inc. CONTACT NAME: Mr. Peter J. Hlavin CONTACT TITLE: Vice President Corporate Development ADDRESS: 1949 E. Sunshine Suite 2300 Springfield, MO 65804 PHONE NUMBER: (417) 890-0102 FAX NUMBER: (417) 890-6872 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 5 COMPANY NAME: EaglePicher Industries Inc CONTACT NAME: Mr. Richard Tenenholtz CONTACT TITLE: Vice President Operations ADDRESS: 250 East Fifth Street, Suite 500 Cincinnati, OH 45202 PHONE NUMBER: (513) 629-2557 FAX NUMBER: (513) 629-2571 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 6 COMPANY NAME: GKN plc CONTACT NAME: Mr. Will Hoy CONTACT TITLE: Acquisition Director ADDRESS: PHONE NUMBER: 011-44-152-753-3288 FAX NUMBER: 011-44-152-753-3473 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 14 of 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 42 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST - -------------------------------------------------------------------------------- 7 COMPANY NAME: Groupe Valfond SA CONTACT NAME: Mr. Herve Guillaume CONTACT TITLE: President ADDRESS: 100-102 Rue de Villiers Levallois-Perret Cedex, France 92309 PHONE NUMBER: 011-33-147-58-2626 FAX NUMBER: 011-33-147-58-2750 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 8 COMPANY NAME: Hidden Creek Industries CONTACT NAME: Mr. Robert Hibbs CONTACT TITLE: Vice President ADDRESS: 4508 IDS Center Minneapolis, MN 55402 PHONE NUMBER: (612) 332-2335 FAX NUMBER: 612-332-2012 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 9 COMPANY NAME: Kaydon Corporation CONTACT NAME: Mr. Brian Campbell CONTACT TITLE: President & CEO ADDRESS: 315 E. Eisenhower Parkway Ann Arbor, MI 48108 PHONE NUMBER: (734) 747-7025 ext 129 FAX NUMBER: (734) 747-6928 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 10 COMPANY NAME: Latona Associates Inc. CONTACT NAME: Mr. Matthew R. Friel CONTACT TITLE: Vice President ADDRESS: Liberty Lane Hampton, NH 03842 PHONE NUMBER: (603) 929-2514 FAX NUMBER: 603-929-2531 EMPLOYEES: 2799 PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 11 COMPANY NAME: Linamar Corporation CONTACT NAME: Ms. Linda Hasenfratz CONTACT TITLE: President and COO ADDRESS: 301 Massey Rd. Guelph, Ontario N1K 1B2 PHONE NUMBER: (519) 836-7550 FAX NUMBER: 519-836-9175 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 12 COMPANY NAME: Pentair, Inc. CONTACT NAME: Mr. George Danko CONTACT TITLE: Vice President Corporate Development ADDRESS: 1500 County Road B2 West Saint Paul, MN 55113-3105 PHONE NUMBER: (651) 636-7920 FAX NUMBER: (651) 639-5209 EMPLOYEES: PARTS/PROCESSES: SOURCE: Financial Buyers - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 15 of 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 43 - -------------------------------------------------------------------------------- PROJECT TITAN WEDNESDAY, AUGUST 11, 1999 MARKETING LIST - -------------------------------------------------------------------------------- 13 COMPANY NAME: Simpson Industries Inc. CONTACT NAME: Mr. Vinod Khilnani CONTACT TITLE: Chief Financial Officer ADDRESS: 47603 Halyard Drive Plymouth, MI 48170 PHONE NUMBER: (734) 207-6200 FAX NUMBER: 734-207-6570 EMPLOYEES: 2100 PARTS/PROCESSES: SOURCE: A List - -------------------------------------------------------------------------------- 14 COMPANY NAME: SPS Technologies, Inc. CONTACT NAME: Mr. William M. Shockley CONTACT TITLE: VP & Chief Financial Officer ADDRESS: 101 Greenwood Avenue Suite 470 Jenkintown, PA 19046 PHONE NUMBER: (215) 517-2000 FAX NUMBER: (215) 517-2032 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- 15 COMPANY NAME: Tomkins plc CONTACT NAME: Mr. Teifion M. Hill CONTACT TITLE: Legal Counsel ADDRESS: East Putney House 84 Upper Richmond Road London, UK SW15 2SST PHONE NUMBER: 011-44-181-877-5171 FAX NUMBER: 011-44-181-877-0010 EMPLOYEES: PARTS/PROCESSES: SOURCE: - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 16 of 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 44 IIC-MARKETING PHASE Activity Summary <PAGE> 45 =============================================================================== PROJECT TITAN DRAFT #1 PHASE I RESPONDENTS WEDNESDAY, AUGUST 11, 1999 ================================================================================ <TABLE> <CAPTION> PHASE I REF COMPANY NAME EXECUTIVE NAME EXECUTIVE TITLE PHONE RECEIVED - ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> 1 Advent International Mr. Scott Castle Associate (617)951-9794 6/3/99 2 AEA Investors Inc. Mr. Kevin J. Kruse Vice President (212)644-5900 6/3/99 3 American Industrial Partners Mr. Ken Diekroeger Managing Director (415)788-7354 6/6/99 4 Apollo Management IV, L.P. Mr. Darrin Cozzolino (212)515-3200 6/7/99 5 Aurora Capital Group Mr. John Mapes Principal (310)551-0101 6/4/99 6 Bain Capital, Inc. Mr. Ronald Mika Managing Director (617)572-3225 6/9/99 7 Berkshire Partners, LLC Ms. Jeanine Neumann Director (617)227-0050 6/2/99 8 Bessemer Partners & Co. Mr. Adam P. Godfrey President (212)708-9158 6/4/99 9 Carreras, Kestner & Co., LLC Mr. Joseph W. Carreras Treasurer (216)574-4968 6/2/99 10 Castle Harlan, Inc. Mr. Howard Weiss CFO (212)644-8600 6/9/99 11 Charter Oak Capital Partners, L.P. Mr. Robert Sarrazin Vice President (203)221-4752 6/8/99 12 Citicorp Venture Capital Mr. Richard Cashen President (212)559-1129 6/9/99 13 Cornerstone Equity Investors, Mr. John A. LLC (Tony) Downer Managing Director (212)207-2367 6/7/99 14 Cortec Management LLC Mr. David L. Schnadig Managing Director (212)916-0171 6/7/99 15 Cravey, Green & Wahlen Inc. Mr. Edwin A. Wahlen, Jr. Partner (404)816-3255 6/3/99 16 DLJ Merchant Banking II, Inc. Mr. Keith Palumbo Vice President (212)892-7085 6/8/99 17 Dubilier & Company Mr. Michael Dubilier Partner (212)727-2327 6/3/99 18 E.M. Warburg, Pincus & Co., LLC Mr. Jonathan Kane Vice President (212)878-0620 6/14/99 19 First Atlantic Capital, Ltd. Mr. Joseph Levy Vice President (212)207-0300 6/2/99 20 Groupe Valfond SA Mr. Herve Guillaume President 011-33-147-58-2626 6/18/99 21 GTCR Golder Rauner, LLC Mr. Greg Huey Analyst (312)382-2223 6/3/99 22 Harbour Group Ltd. Mr. Mark Leeker Dir. of Corp. Dev. (314)727-5550 6/3/99 23 Harvest Partners, Inc. Mr. William J. Kane General Partner (212)599-6300 6/2/99 24 Hidden Creek Industries Mr. Robert Hibbs Vice President (612)332-2335 6/3/99 25 J.F. Lehman & Company Mr. Stephen Brooks Associate (212)634-1157 6/3/99 26 Kelso & Company Mr. James J. Connors,II VP/Gen. Counsel (212)751-3939 6/4/99 27 Kirtland Capital Partners Mr. Michael DeGrandis Partner (440)585-9010 6/3/99 <CAPTION> PHASE II CATEGORY CA ACCEP. FIN. CAPAB SENT <S> <C> <C> <C> <C> 1 Advent International Financial Buyer changes 2 AEA Investors Inc. Financial Buyer changes 3 American Industrial Partners Financial Buyer yes 6/8/99 4 Apollo Management IV, L.P. Financial Buyer revised-yes 6/14/99 5 Aurora Capital Group Financial Buyer revised-yes 6/11/99 6 Bain Capital, Inc. Financial Buyer revised-yes 6/9/99 7 Berkshire Partners, LLC Financial Buyer yes 6/8/99 8 Bessemer Partners & Co. Financial Buyer yes 6/8/99 9 Carreras, Kestner Financial Buyer yes 6/8/99 & Co., LLC 10 Castle Harlan, Inc. Financial Buyer revised-yes 6/9/99 11 Charter Oak Capital Partners, Financial Buyer yes 6/8/99 L.P. 12 Citicorp Venture Capital Financial Buyer yes 6/9/99 13 Cornerstone Equity Investors, Financial Buyer yes 6/8/99 LLC 14 Cortec Management LLC Financial Buyer revised-yes 6/8/99 15 Cravey, Green & Wahlen Inc. Financial Buyer yes 6/8/99 16 DLJ Merchant Banking II, Inc. Financial Buyer revised-yes 6/10/99 17 Dubilier & Company Financial Buyer yes 6/8/99 18 E.M. Warburg, Pincus & Co., LLC Financial Buyer revised-yes 6/15/99 19 First Atlantic Capital, Ltd. Financial Buyer changes 20 Groupe Valfond SA Strategic Buyer yes 6/21/99 21 GTCR Golder Rauner, LLC Financial Buyer changes 22 Harbour Group Ltd. Financial Buyer yes 6/8/99 23 Harvest Partners, Inc. Financial Buyer yes 6/8/99 24 Hidden Creek Industries Financial Buyer yes 6/8/99 25 J.F. Lehman & Company Financial Buyer revised-yes 6/8/99 26 Kelso & Company Financial Buyer yes 6/8/99 27 Kirtland Capital Partners Financial Buyer yes 6/8/99 ==================================================================================================================================== </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 1 OF 2 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 46 <TABLE> <CAPTION> - ------------------------------------------------------------------------------------------------------------------------- PHASE I REF COMPANY NAME EXECUTIVE NAME EXECUTIVE TITLE PHONE RECEIVED - ------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> 28 Latona Associates Inc. Mr. Matthew R. Friel Vice President (603) 929-2514 6/7/99 29 Lehman Brothers Merchant Banking Mr. Mark MacTavish Managing Director (212) 526-4699 6/2/99 30 Leonard Green & Partners Mr. Gregory J. Annick Vice President (310) 954-0430 6/2/99 31 Linamar Corporation Ms. Linda Hasenfratz President/COO (519) 836-7550 6/9/99 32 Linsalata Capital Partners Mr. Donald Molten Senior VP (440) 684-1400 6/9/99 33 Metal Forming Technologies, Inc. Mr. David W. Riesmeyer Exec. VP/CFO (312) 782-9655 6/2/99 34 Odyssey Investment Partners, LLC Mr. Brian Kwait Managing Principal (212) 351-7970 6/3/99 35 Penske Capital Partners Mr. Steven Carrel Associate (212) 207-9643 6/2/99 36 Questor Management Company Mr. Jason Runco Associate (248) 213-2222 6/14/99 37 Saunders Karp & Megrue, L.P. Mr. John Clark Partner (212) 303-6622 6/2/99 38 Simpson Industries Inc. Mr. Vinod Khilnani VP and CFO (734) 207-6200 6/2/99 39 Stonington Partners, Inc. Ms. Judith A. Witterschein VP/Corp. Counsel (212) 339-8536 6/9/99 40 The Carlyle Group Mr. Raymond Whiteman Principal (202) 347-2626 6/8/99 41 The Riverside Company Mr. Alan J. Walther Partner 212- 265-6408 6/2/99 42 The Veritas Capital Fund L.P. Mr. Thomas J. Campbell Partner (212) 688-0020 6/2/99 43 Thomas H. Lee Company Mr. Seth Lawry Managing Director (617) 227-1050 6/7/99 44 Tompkins plc Mr. Teifion M. Hill Legal Counsel 011-44-181-877-517 6/10/99 45 Wind Point Partners Mr. Robert L. Cummings Managing Director 248- 945-7206 6/2/99 46 Wingate Partners, L.P. Mr. Jay I. (Bud) Applebaum Principal (214) 720-1313 6/2/99 </TABLE> <TABLE> <CAPTION> ----------------------------------------------------------------- PHASE II CATEGORY CA ACCEP. FIN. CAPAB SENT ----------------------------------------------------------------- <S> <C> <C> <C> <C> 28 Latona Associates Inc. Strategic Buyer changes Rec'd 8/9/99 - o.k. 8/10/99 29 Lehman Brothers Merchant Banking Financial Buyer yes 6/8/99 30 Leonard Green & Partners Financial Buyer yes 6/8/99 31 Linamar Corporation Strategic Buyer yes 6/9/99 32 Linsalata Capital Partners Financial Buyer yes 6/9/99 33 Metal Forming Technologies, Inc. Financial Buyer yes 6/8/99 34 Odyssey Investment Partners, LLC Financial Buyer yes 6/8/99 35 Penske Capital Partners Financial Buyer changes 36 Questor Management Company Financial Buyer revised - yes 6/14/99 37 Saunders Karp & Megrue, L.P. Financial Buyer revised - yes 6/8/99 38 Simpson Industries Inc. Strategic Buyer yes 6/8/99 39 Stonington Partners, Inc. Financial Buyer revised - yes 6/9/99 40 The Carlyle Group Financial Buyer yes 6/8/99 41 The Riverside Company Financial Buyer yes 6/8/99 42 The Veritas Capital Fund L.P. Financial Buyer yes 6/8/99 43 Thomas H. Lee Company Financial Buyer changes 44 Tompkins plc Strategic Buyer revised - yes 6/18/99 45 Wind Point Partners Financial Buyer yes 6/8/99 46 Wingate Partners, L.P. Financial Buyer yes 6/8/99 </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 2 OF 2 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 47 IID - MARKETING PHASE Phase II Letter and Summary Information Memorandums Sent <PAGE> 48 - -------------------------------------------------------------------------------- PHASE II LETTER - -------------------------------------------------------------------------------- <PAGE> 49 [RONEY & CO. LOGO] INVESTMENT BANKING One Griswold Detroit, Michigan 48226 June 8, 1999 <<Salutation>> <<ContactFirstName>> <<ContactLastName>> <<Title>> <<Company_Name>> <<Address>> <<Address1>> <<City>>, <<StateorProvince>> <<PostalCode>> PRIVATE & CONFIDENTIAL Dear <<Salutation>> <<ContactLastName>>: Roney & Co. ("Roney") has been retained by Autocam Corporation ("Autocam" or the "Company"), on an exclusive basis, to manage a business combination process ("Business Combination") that may include the potential sale of the business. Having received and reviewed your response to the Phase I Introductory Letter, we are now formally extending an invitation to participate in Phase II - Summary Information Phase ("Phase II") of the Business Combination process. As part of Phase II, the Company has instructed us to provide you with the enclosed Summary Information Memorandum ("Summary Information Memorandum"). In receiving the Summary Information Memorandum, you continue to be bound by the terms of the Confidentiality Agreement previously signed by you and forwarded to Roney. The possible Business Combination of Autocam Corporation is highly confidential and has not been publicly announced. United States securities laws prohibit any person who has material, non-public information concerning an issuer of publicly held securities from purchasing or selling such securities. Investigations during Phase II will be primarily based upon information contained in the enclosed Summary Information Memorandum with clarification, if any, supplied by Roney. All contact and requests should be directed to Roney. These requests will be handled on a case by case basis. If you are interested in pursuing a transaction, please submit to Roney a preliminary non-binding offer letter containing the following: TRANSACTION STRUCTURE: The Transaction will be structured as a sale of stock. FORM OF CONSIDERATION: The consideration to be received by the Shareholders will be cash. VALUATION/INVESTMENT: Method(s) utilized to arrive at the valuation conclusion. OUTSIDE ADVISORS: List of any outside advisors, including investment bankers, financing sources, accountants and legal counsel. CONTINGENCIES: Any due diligence, financing or other contingencies. MISCELLANEOUS: Any other factors you deem relevant. In assessing the qualifications of the parties who desire to participate in Phase III - Due Diligence Phase and who will be invited to submit formal proposals, the Company and its advisors will consider the above mentioned factors as well as other factors as may be deemed relevant. <PAGE> 50 June 8, 1999 Page 2 of 2 The preliminary offer letters should be submitted NO LATER THAN FRIDAY, JUNE 18TH and addressed to: Mr. James C. Penman Managing Director of Corporate Finance Roney & Co. One Griswold Detroit, MI 48226 On or before JUNE 28, 1999, Roney will notify parties who have submitted preliminary offers as to whether or not they will be invited to participate in Phase III - Due Diligence Phase. These transaction participants ("Transaction Participants") will then be given a comprehensive Confidential Offering Memorandum ("Offering Memorandum") and be given an opportunity to perform on-site due diligence, including access to additional confidential information and meetings with management. Prior to the completion of Phase III - Due Diligence Phase, the selected Transaction Participants will be sent a Bidding Procedures Letter and will be asked to submit a binding final offer, subject to the execution of a definitive agreement. Following receipt of the final offers, the Company anticipates entering into negotiations and proceeding immediately to the execution of a definitive agreement. The following summarizes the timeline that is anticipated in connection with the transaction: <TABLE> <CAPTION> <S> <C> DATE ITEM OF IMPORTANCE ---- ------------------ June 18, 1999 Preliminary Offer Letters Due June 28, 1999 Release of Phase III - Confidential Offering Memorandum July 12, 1999 Phase III Deadline - Binding Final Offers Weeks of July 19 - Aug. 13, 1999 Management Presentations Due Diligence Begins / Data Room Visitation Model Purchase Agreement Distributed August 27, 1999 Purchase Agreement Signed - Hart Scott Filing </TABLE> It should be noted that the Company expressly reserves the right at any time to modify the procedures described herein, to amend the terms of the transaction, to terminate the transaction, to terminate discussions with any or all prospective Transaction Participants, to reject any or all proposals, or to reopen the transaction process at any time. Any questions or comments regarding the Transaction or the process should be directed to the individuals at Roney & Co. listed below. NO EMPLOYEES OF THE COMPANY OR ITS SUBSIDIARIES, SHOULD BE CONTACTED DIRECTLY. James C. Penman C. Kirk Haggarty Ty T. Clutterbuck Managing Director Director Associate Director (313) 225-5746 (313) 225-5748 (313) 225-5751 Very truly yours, [RONEY & CO. LOGO] James C. Penman James C. Penman Managing Director Enclosure <PAGE> 51 - -------------------------------------------------------------------------------- SUMMARY INFORMATION MEMORANDUM - -------------------------------------------------------------------------------- <PAGE> 52 DIVESTITURES AND CORPORATE SALES CONFIDENTIAL AUTOCAM CORPORATION SUMMARY FACT SHEET <TABLE> <CAPTION> <S> <C> COMPANY The Company is a world leader in the design and manufacture of high volume precision machined extremely close tolerance, specialty metal alloy components which are sold to the transportation and medical device industries. These components are used primarily in fuel, power steering and braking systems for passenger cars, light trucks, heavy trucks and related equipment and devices for surgical procedures. The Company's customer base includes industry and technology leaders such as Robert Bosch Corporation, Delphi Automotive Systems, Continental Teves, TRW, Inc., ZF Gmbh, SMI-Koyo, Siemens Automotive and Caterpillar, Inc. Autocam's operating strategy is based on the implementation of Toyota Production System ("TPS") principles at all of its manufacturing locations. Autocam's culture emphasizes continuous improvement through cellular manufacturing, one-piece flow, working capital management, supply chain management, value engineering, and kaizen activities. Autocam is realizing and its financial performance reflects the benefits of TPS with improvements in scrap rates, labor productivity, working capital turnover, and asset utilization. The Company has eleven manufacturing facilities with six located in the United States, three located in Brazil, and two located in France. The Company is a QS9000 registered supplier and has been awarded numerous awards from OEM and Tier One customers. INDUSTRY The North American precision-machined products segment is large, highly fragmented and undergoing increased consolidation. According to the Precision Machined Products Association (PMPA), the Precision Machined Products Industry employs more than 56,000 highly skilled professionals at approximately 1,600 companies across North America. These companies produce high precision, custom component parts by the billions. The PMPA estimates that the total annual sales of the industry are approximately $5.4 billion, which corresponds to an average sales per company of just $3.3 million, indicating a highly fragmented industry. According to the PMPA, real growth for the industry, adjusted for inflation, is projected to average approximately 3%-5% over the next several years. </TABLE> ------------------------------------------------------------- FINANCIAL SUMMARY FINANCIAL SUMMARY For the Twelve Months Ended June 30, ($'S IN THOUSANDS) ------------------------------------------------------------- <TABLE> <CAPTION> HISTORICAL FORECASTED ----------------------------- ----------------------------- ACTUAL PRO FORMA(1) PRO FORMA(1) ACTUAL(2) 1998 1998 1999 2000 ------------- ------------ ------------ ------------- INCOME STATEMENT DATA --------------------- <S> <C> <C> <C> <C> Total Sales $90,362 $180,601 $200,459 $203,577 Growth Rate 45.8% 191.4% 11.0% 1.6% Adjusted EBIT $15,715 $27,495 $21,208 $32,636 Adjusted EBIT Margin 17.4% 15.2% 10.6% 16.0% Adjusted EBITDA $23,369 $40,396 $36,486 $49,750 Adjusted EBITDA Margin 25.9% 22.4% 18.2% 24.4% BALANCE SHEET DATA ------------------ Capital Expenditures $17,484 $33,352 $30,568 $16,000 Funded Debt (net of restricted cash) $39,398 $112,398 $118,997 $115,071 Assets Available for Sale (3) $16,000 $16,000 $16,000 - --------------------------------------------------------------------------------------------------------- </TABLE> Notes: 1. Pro Forma 1998 and 1999 figures adjusted to reflect acquisitions as of the beginning of the respective period. 2. Sales for 2000 reflect only sales supported by a Purchase Order. The Company expects to receive additional new business in 2000. 3. This represents the orderly liquidation value of assets that were previously utilized in the business which are now idle due to continuous improvement and acquisition integration initiatives. - -------------------------------------------------------------------------------- 1 RONEY & CO. - -------------------------------------------------------------------------------- <PAGE> 53 ACQUISITION To compete on a global basis, the Company has made the following ACTIVITY strategic acquisitions: <TABLE> <CAPTION> ACQUISITION LOCATION DATE --------------------------------- ----------------------------------- --------------------- <S> <C> <C> The Hamilton Group Dowagiac, MI and Gaffney, SC June 30, 1997 Qualipart Industria E Comercio Boituva, Campinas and Pinhal, January 1, 1998 Ltd. Brazil Frank & Pignard S.A. Pochons and Ternier, France October 1, 1998 </TABLE> PRODUCTS The Company is a world leader in the design and manufacture of close tolerance, specialty metal alloy components which are sold to the transportation and medical device industries. These components are used primarily in fuel, power steering and braking systems for passenger cars, light trucks, heavy trucks and related equipment, and devices for surgical procedures. The Company manufactures products utilized in the following industry applications: TRANSPORTATION PRODUCTS MEDICAL DEVICES PRODUCTS ----------------------------- --------------------------- -- Fuel system components -- Minimally invasive -- Power steering system ophthalmic surgery components equipment components -- Braking system components -- Cardiovascualar -- Other transportation surgery equipment components components <TABLE> <CAPTION> SALES BY PRODUCT APPLICATION For the Twelve Months Ended June 30, ($'S IN THOUSANDS) --------------------------------------------------------------------------------------------------------- HISTORICAL FORECASTED ---------------------------- ---------------------------- ACTUAL PRO FORMA(1) PRO FORMA(1) ACTUAL(2) Market Application 1998 1998 1999 2000 ---------------- ----------------------- ----------- ------------- ------------ ------------ <S> <C> <C> <C> <C> <C> Transportation Fuel Systems $51,673 $71,909 $88,186 $95,234 Steering Systems - 51,938 58,498 54,074 Braking Systems 18,226 27,617 25,732 34,011 Other 2,296 10,275 17,076 14,860 ----------- ------------- ------------ ------------ $72,195 $161,739 $189,492 $198,179 Medical Stents/Instruments $9,907 $9,907 $8,060 $5,398 Other Miscellaneous $8,260 $8,955 $2,907 - ----------- ------------- ------------ ------------ Total $90,362 $180,601 $200,459 $203,577 --------------------------------------------------------------------------------------------------------- </TABLE> Notes: 1. Pro Forma 1998 and 1999 figures adjusted to reflect acquisitions as of the beginning of the respective period. 2. Sales for 2000 reflect only sales supported by a Purchase Order. The Company expects to receive additional new business in 2000. - -------------------------------------------------------------------------------- 2 RONEY & CO. - -------------------------------------------------------------------------------- <PAGE> 54 ------------------------------------------------------------- SALES BY CUSTOMER SALES BY CUSTOMER For the Twelve Months Ended June 30, ($'S IN THOUSANDS) ------------------------------------------------------------- <TABLE> <CAPTION> HISTORICAL FORECASTED ------------------------------ ---------------------------- ACTUAL PRO FORMA(1) PRO FORMA(1) ACTUAL(2) CUSTOMER 1998 1998 1999 2000 ----------------------------------- ------------ -------------- ------------- ----------- <S> <C> <C> <C> <C> FUEL SYSTEMS Caterpillar, Inc. $3,976 $9,576 $11,003 $11,155 Delphi Automotive Systems 24,532 24,532 29,163 31,123 Diesel Technology 4,501 4,501 5,941 6,968 Hitachi Automotive/Fasco Controls 4,007 4,007 4,469 4,130 TRW, Inc. - 13,230 16,299 19,561 Robert Bosch Corporation 13,220 14,472 14,769 13,918 Siemens/Ford/Visteon 1,272 1,272 5,295 8,379 Other 165 319 1,247 - ------------ -------------- ------------- ----------- Subtotal Fuel Systems $51,673 $71,909 $88,186 $95,234 POWER STEERING Koyo - $21,559 $26,035 $22,116 Peugeot - 2,123 1,548 1,910 TRW, Inc. - 3,512 4,720 3,930 ZF Gmbh - 24,744 26,195 26,118 ------------ -------------- ------------- ----------- Subtotal Power Steering $0 $51,938 $58,498 $54,074 BRAKE SYSTEMS Continental Teves $2,849 $4,155 $2,383 $2,768 Lucas Sumitomo/Varity Kelsey Hayes 1,899 1,899 4,605 8,519 Robert Bosch Corporation 11,064 19,149 16,737 20,744 Other 2,414 2,414 2,007 1,980 ------------ -------------- ------------- ----------- Subtotal Brake Systems $18,226 $27,617 $25,732 $34,011 OTHER TRANSPORTATION Peugeot - $3,757 $4,069 $3,389 Robert Bosch Corporation $75 651 3,499 2,925 Other 2,221 5,867 9,508 8,546 ------------ -------------- ------------- ----------- Subtotal Other Automotive $2,296 $10,275 $17,076 $14,860 MEDICAL DEVICES Alcon Surgical $4,417 $4,418 $3,928 $3,455 Other Stents 1,565 1,565 1,633 1,739 Other Medical Devices 872 871 244 204 Vascular Therapies (U.S. Surgical) 3,053 3,053 2,255 - ------------ -------------- ------------- ----------- Subtotal Medical Devices $9,907 $9,907 $8,060 $5,398 OTHER Other - Miscellaneous $8,260 $8,955 $2,907 $0 ------------ -------------- ------------- ----------- Subtotal Other $8,260 $8,955 $2,907 $0 TOTAL $90,362 $180,601 $200,459 $203,577 </TABLE> - -------------------------------------------------------------------------------- Notes: 1. Pro Forma 1998 and 1999 figures adjusted to reflect acquisitions as of the beginning of the respective period. 2. Sales for 2000 reflect only sales supported by a Purchase Order. The Company expects to receive additional new business in 2000. <PAGE> 55 SALES BY GEOGRAPHIC MANUFACTURING ORIGINATION SALES BY For the Twelve Months Ended June 30, GEOGRAPHY ($'S IN THOUSANDS) <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------ HISTORICAL FORECASTED ----------------------------- ------------------------------- ACTUAL PRO FORMA(1) PRO FORMA(1) ACTUAL(2) Location 1998 1998 1999 2000 ------------------------------- ------------ ------------- ------------- -------------- <S> <C> <C> <C> <C> North America $84,237 $84,354 $93,216 $101,165 Europe - 81,664 94,227 90,956 South America 6,125 14,583 13,016 11,456 ------------ ------------- ------------- -------------- Total $90,362 $180,601 $200,459 $203,577 ------------------------------------------------------------------------------------------------------------ </TABLE> Notes: 1. Pro Forma 1998 and 1999 figures adjusted to reflect acquisitions as of the beginning of the respective period. 2. Sales for 2000 reflect only sales supported by a Purchase Order. The Company expects to receive additional new business in 2000. FACILITIES CURRENT FACILITIES AND EQUIPMENT FACILITIES <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------ Facility Operation Leased/Owned Lease Duration Sq. Ft. ------------------- --------------------------------------- -------------------- --------------- ----------- <S> <C> <C> <C> <C> Kentwood, MI - I Precision turning, grinding, tool Owned -- 88,000 making Kentwood, MI - II Precision turning, grinding Leased/Subleased 2 / 05 100,000 Pochons, France Precision turning, grinding, tool Leased 1 / 09 143,000 making Ternier, France Precision turning, grinding, tool Leased 1 / 09 73,000 making Dowagiac, MI Turning, hot forging, assembly, cold Owned -- 67,000 heading Marshall, MI Precision turning Owned -- 56,000 Gaffney, SC Turning, assembly Owned 25,000 Hayward, CA Precision milling and turning, laser Leased 4 / 00 27,000 machining Campinas, Brazil Precision turning, grinding Leased 10 / 99 22,000 Pinhal, Brazil Precision turning, grinding Leased 6 / 04 24,000 Boituva, Brazil Precision turning, grinding Leased 8 / 08 36,000 </TABLE> INVESTMENT GLOBAL OPERATIONS: The Company is the only precision machining HIGHLIGHTS company with manufacturing operations in three continents. As vehicle manufacturers utilize common components across platforms and develop global vehicle platforms, such as "world cars", that are manufactured and sold in numerous markets around the world, world class suppliers are being required to maintain a global manufacturing presence. In recognition of this industry trend, the Company has made acquisitions that it believes will provide substantial competitive advantage to pursue new business around the world. The Company is already experiencing the benefits of this global sourcing trend as its customers are requesting the Company to quote on larger programs with global applications. In addition, the Company believes that the global presence will allow the Company to leverage its sales relationship with its current customers, to develop new customers and to optimize its manufacturing capacity and cost structure. TECHNOLOGY TRENDS: Electronic content on vehicles has been increasing and is expected to increase in the future. The increase in electronic content is largely driven by continued, and often increasingly stringent, regulatory standards for automotive emissions and safety as well as consumer demand for increased vehicle performance and functionality at lower cost. Electronics integration, which generally refers to replacing mechanical with electronic components and integration of mechanical and electrical functions within the vehicle, allows OEMs to achieve substantial reduction in weight and complexity of automotive vehicles, resulting in easier assembly, enhanced fuel economy, improved emissions control and better vehicle performance. As consumers seek more competitively priced ride and handling performance, safety, security, communications, convenience, entertainment and environment-friendly options in vehicles, the electronic content per vehicle will continue to increase. The Company's manufacturing and engineering expertise has enabled the Company to develop electronic integration experience and position itself as a key supplier for emerging applications in electronic power assist steering, brake by wire and electronic fuel injection systems. - -------------------------------------------------------------------------------- 4 RONEY & CO. - -------------------------------------------------------------------------------- <PAGE> 56 INVESTMENT PRECISION MACHINED COMPONENTS PRODUCT APPLICATIONS: The HIGHLIGHTS Company is a leading designer and manufacturer of high volume (Continued) precision machined extremely close tolerance specialty metal alloy components. The Company is capable of holding tolerances in the single digit micron range. In fuel systems, the Company manufactures seats, pole pieces, inlet tubes, valve blanks and seat carriers. In steering systems, the Company manufactures pinions, input shafts, torsion bars and sleeves. In braking systems, the Company manufactures forged valve rods, push rods, pistons, sleeves and spools. In medical devices, the Company manufactures ophthalmic hand piece components and stents. LONG-TERM RELATIONSHIPS WITH ROBERT BOSCH CORPORATION: Robert Bosch has demonstrated its confidence in the Company by awarding Autocam increasingly significant component contracts in both fuel and brake system applications. Robert Bosch awarded the Company, in connection with the Hamilton Acquisition, additional braking system components thereby demonstrating Robert Bosch's belief in the Company's capabilities. Sales to Robert Bosch Corporation are expected to be over $37 million for the twelve months ended June 30, 2000. LONG-TERM RELATIONSHIPS WITH DELPHI AUTOMOTIVE SYSTEMS: Delphi has demonstrated its confidence in the Company by awarding Autocam increasingly significant component contracts. The Multec II injector program, launched in 1998 model year, is expected to generate sales of over $30 million for the twelve months ended June 30, 2000. This fuel system is expected to be used on approximately 70% of GM's vehicles. LONG-TERM RELATIONSHIPS WITH ZF GMBH AND KOYO CORPORATION: ZF and Koyo have demonstrated its confidence in the Company by awarding F&P, Autocam's European operation, increasingly significant component contracts for power steering system applications. Combined sales to ZF Gmbh and Koyo Corporation are expected to be over $48 million for the twelve months ended June 30, 2000. DEVELOPING RELATIONSHIP WITH SIEMENS AUTOMOTIVE, FORD MOTOR AND VISTEON CORPORATION: Siemens, Ford and Visteon have demonstrated their confidence in the Company by awarding the Company significant component contracts for fuel system applications. Sales to these companies are expected to be in excess of $8 million in 2000F. QUALITY AWARD DESIGNATIONS: The Company has received the following awards: -- QS 9000 registration -- GM supplier of the year - last three years -- Hitachi supplier of the year - 5 of last 6 years -- Forbes 200 Best Small Public Companies - 1995, 1996 and 1998 DIVERSE INDUSTRY AND PRODUCT APPLICATIONS: In the transportation industry, the Company's precision machined components are used in fuel, power steering and braking system applications. In the medical products industry, the Company's products are used to make surgical tools used in ophthalmic applications and stents, used in surgical procedures. - -------------------------------------------------------------------------------- 5 RONEY & CO. - -------------------------------------------------------------------------------- <PAGE> 57 INVESTMENT ACQUISITION INTEGRATION CAPABILITIES: The Company has HIGHLIGHTS successfully integrated three acquisitions over the last three (Continued) years. In integrating these acquisitions, Autocam has developed a skill set reflecting an operating system based on Toyota Production System principles. The operating system implementation has allowed the Company to increase its return on invested capital by removing assets from existing production, reducing working capital levels, improving facility capacity and reducing waste in the acquired business. From a quantitative standpoint, the Company expects to reduce temporary labor by eliminating approximately 153 positions for a cost savings of approximately $3.6 million, reduce permanent labor by eliminating approximately 63 positions for a cost savings of approximately $1.9 million, reduce expedited freight charges by approximately $0.5 million, reduce material costs through re-engineering efforts thus saving approximately $0.8 million in 2000, close an entire facility and transfer the business and equipment to more productive facilities thus providing cost savings of approximately $0.8 million and redeploy underutilized assets to handle its growing revenue opportunities, thus utilizing the assets of the Company more efficiently. All of these cost reduction and asset utilization programs are scheduled to occur between 1999 and 2000 and reflect management's operating expertise and acquisition integration experience. ORGANIC GROWTH OPPORTUNITIES: The Company has identified several opportunities for future growth with its existing customers. The transportation industry is experiencing steady unit sales, with growth in options for electronic and electromechanical systems that enhance safety, reduce vehicle weight, lower cost or are environmentally efficient. The Company has also identified additional applications for precision machined components that are used primarily on the resultant systems in electric motors, electronic components and transmission and steering applications. In the medical industry, the Company has developed a laser machining process to produce stents. Industry demand for stents is rapidly expanding. ACQUISITION GROWTH OPPORTUNITIES: The Company has established a goal of growing sales and earnings in excess of 20% per year. In so doing, the Company believes it will be in a better position to negotiate prices with customers, provide personal growth opportunities to employees and increase the value of the Company for all stakeholders. The Company has identified new programs with existing customers and additional acquisition targets to support the growth targets. In acquisitions, the Company seeks customer diversification, product and process enhancements and geographical balance. SOPHISTICATED MARKETING APPROACH: The Company devotes substantial resources to research new markets and product applications that can be produced with the Company's core precision machining competency. The Company has been successful in developing new product applications in the transportation industry and new markets and product applications in the medical device industry. DEDICATION TO CONTINUOUS IMPROVEMENT: The Company is dedicated to continuous and rapid improvement in its businesses by strategic investment in capacity, manufacturing efficiencies, process improvements, aggressive marketing initiatives and people resources. The Company's management and employees are involved with activities that foster and reward continuous improvement. Primarily as a result of the Company's continuous improvement activities, the Company has been able to create additional manufacturing capacity and take on new programs without additional capital outlays. DISCIPLINED WORKING CAPITAL MANAGEMENT: The Company closely coordinates purchasing, manufacturing and continuous improvement activities to minimize working capital usage. On a pro forma basis, for the twelve months ended June 30, 1998, the Company turned its inventories 11.9x. The Company believes additional opportunities exist to increase throughput, especially in recently acquired businesses. The Company believes that the magnitude of inventory reduction effort will be approximately $5 million. - -------------------------------------------------------------------------------- 6 RONEY & CO. - -------------------------------------------------------------------------------- <PAGE> 58 INVESTMENT MANUFACTURING TECHNOLOGY STRATEGY: State of the art HIGHLIGHTS machinery and technical skills that allow close tolerances and an (Continued) ongoing commitment to continuous process improvement have positioned the Company as the low cost producer in its product lines. The Company's model facility utilizes CNC turning, multispindle turning and CNC grinding technology for manufacturing prototype products and for the development of new processes. The Company's in-house tool-making capability allows the Company to respond easily to design changes and continuous improvement modifications. To meet the diverse needs of high-volume manufacturing, the Company uses leading edge, flexible machining technology and a broad range of resources. The Company operates European-built multispindle and single spindle turning machines capable of holding tolerances in the single-digit micron range. The Company's grinding operations utilize both infeed and throughfeed CNC centerless grinders capable of holding single-digit micron tolerances with superior surface finish. The Company's equipment can be rapidly and cost effectively changed to manufacture various product applications. LOCATION OF MANUFACTURING FACILITIES AND ADMINISTRATIVE OFFICES: The Company's headquarters, including the engineering and marketing group, are located in the Midwest. Both OEMs and OEM suppliers operate manufacturing plants throughout the U.S., Canada, Mexico, South America and Europe that are served by the Company. The Company is dedicated to servicing its customers wherever they are located. The Company now has manufacturing operations in Michigan, South Carolina, California, France and Brazil. Given the manufacturing facilities' proximity to its customers, the Company enjoys relatively low end product shipment transportation costs. Low transportation costs allow the Company to offer more overall competitive bids for potential contracts. Additionally, given its diverse locations, the Company enjoys the benefit of a skilled and available labor force and the ability to optimize manufacturing capacity. EXCELLENT RELATIONS WITH EMPLOYEES: The Company has maintained a long-standing, mature relationship with its employees. Since founded, the Company has never had any extended work stoppages, strikes or arbitration that resulted in customer delays. The Company is involved in a number of ongoing programs designed to maintain and improve employee morale and strengthen the Company's labor relations. The Company's management has made a significant commitment to train its employees, stressing employee education. The Company added training programs at almost all facilities. Training covers such areas as error-proofing processes, Statistical Process Control ("SPC"), leadership and problem solving. ENGINEERING/MARKETING AND INFORMATION SYSTEMS FOCUS: In support of its marketing and engineering strategy, the Company has invested substantial resources in developing engineering, process design and information systems capabilities to meet the increasing demands of its customers. These capabilities include the establishment of project management teams, consisting of marketing and program engineering and program management teams, to support the OEMs and Tier One suppliers. It is the Company's goal to continue to support the marketing and engineering groups by developing information systems capabilities that will support the customer, allow the Company to coordinate key finance, manufacturing, engineering, sales and marketing, quality, human resources, and purchasing activities and integrate data through each program stage. The Company's recent European and South American acquisitions have accelerated the need for enhanced communication information systems. DECENTRALIZED, PARTICIPATIVE CULTURE: The Company's decentralized approach to managing its business encourages decision making and employee participation in areas such as manufacturing processes and customer service. The Company's management team meets frequently at various Company locations in order to maintain a unified Company culture. In its North American operations, to increase employee productivity, the Company provides incentive programs for all salaried and hourly employees and provides incentives for employees who take advantage of its continuous improvement programs and who provide cost savings ideas. The Company is evaluating implementing similar programs in its European and South American operations - -------------------------------------------------------------------------------- 7 RONEY & CO. - -------------------------------------------------------------------------------- <PAGE> 59 INVESTMENT CONSISTENT OPERATING RESULTS: The Company has achieved HIGHLIGHTS Adjusted EBIT margins in excess of 15% for each of the twelve (Continued) month periods ending June 30, 1996, 1997 and 1998, respectively. The Company's Adjusted EBIT margin for 1999 is forecasted to be below 15%. The Company is implementing continuous improvement activities based on TPS methodology that are impacting the current operating results of the business. The Company's fourth quarter EBIT margin for 1999 is showing substantial improvement, reflecting the continuous improvement activities of the previous quarters. The Company, on a pro forma basis, is forecasting Adjusted EBIT margins of approximately 16.0% for the twelve months ended June 30, 2000. <TABLE> <CAPTION> FINANCIAL INFORMATION As of March 31, 1999 ($'S IN THOUSANDS) ------------------------------------------------------------------------------------------ INCOME STATEMENT DATA HISTORICAL FORECASTED ------------------------------ ------------------------------ ACTUAL PRO FORMA(1) PRO FORMA(1) ACTUAL(2) 1998 1998 1999 2000 ------------- ------------- ------------ -------------- <S> <C> <C> <C> <C> Total Sales (1) Growth Rate $90,362 $180,601 $200,459 $203,577 Adjusted EBIT 45.8% 191.4% 11.0% 1.6% Adjusted EBIT Margin $15,715 $27,495 $21,208 $32,636 Adjusted EBITDA 17.4% 15.2% 10.6% 16.0% Adjusted EBITDA Margin $23,369 $40,396 $36,486 $49,750 25.9% 22.4% 18.2% 24.4% </TABLE> <TABLE> <CAPTION> BALANCE SHEET DATA ------------ March 31, 1999 ----------- ASSETS: <S> <C> Cash $1,541 Accounts receivable 42,408 Inventories 15,450 Other current assets 1,586 ------------ TOTAL CURRENT ASSETS 60,985 Fixed assets, net 132,460 Goodwill and other intangibles 26,376 Other assets 12,877 ------------ TOTAL ASSETS $232,698 ============ LIABILITIES: Current maturities of long term debt $2,437 Accounts payable 22,548 Accrued liabilities 11,298 ------------ TOTAL CURRENT LIABILITIES 36,283 Long-term obligations, net 118,496 Deferred taxes 26,394 Other liabilities 5,619 Minority interest 2,382 Shareholders' equity 43,524 ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $232,698 ============ </TABLE> ADDITIONAL FINANCIAL DATA ASSETS AVAILABLE FOR SALE (3) $16,000 - -------------------------------------------------------------------------------- Notes: 1. Pro Forma 1998 and 1999 figures adjusted to reflect acquisitions as of the beginning of the respective period. 2. Sales for 2000 reflect only sales supported by a Purchase Order. The Company expects to receive additional new business in 2000. 3. This represents the orderly liquidation value of assets that were previously utilized in the business which are now idle due to continuous improvement and acquisition integration initiatives. - -------------------------------------------------------------------------------- 8 RONEY & CO. - -------------------------------------------------------------------------------- <PAGE> 60 NO CALLS ARE TO BE MADE WITHOUT CONTACTING ONE OF THE FOLLOWING: RONEY & CO. ONE GRISWOLD DETROIT, MI 48226 <TABLE> <S> <C> <C> JAMES C. PENMAN C. KIRK HAGGARTY TY T. CLUTTERBUCK Managing Director Director Associate Director (313) 225-5746 (313) 225-5748 (313) 225-5751 </TABLE> - -------------------------------------------------------------------------------- 9 RONEY & CO. - -------------------------------------------------------------------------------- <PAGE> 61 IIE - MARKETING PHASE Phase II Indications of Interest / Transaction Participant Details <PAGE> 62 - -------------------------------------------------------------------------------- PHASE II INDICATIONS OF INTEREST - -------------------------------------------------------------------------------- <PAGE> 63 - ------------------------------------------------------------------------------- PROJECT TITAN PHASE II RESPONDENTS Thursday, September 02, 1999 - ------------------------------------------------------------------------------- <TABLE> <CAPTION> REF COMPANY NAME EXECUTIVE NAME EXECUTIVE TITLE PHONE CATEGORY <S> <C> <C> <C> <C> <C> 1 Managing Director Financial Buyer 2 Principal Financial Buyer 3 President Financial Buyer 4 Treasurer Financial Buyer 5 President Financial Buyer 6 Vice President Strategic Buyer 7 Partner Financial Buyer 8 VP and CFO Strategic Buyer 9 Partner Financial Buyer 10 Managing Director Financial Buyer </TABLE> <TABLE> <CAPTION> PHASE II PHASE II PHASE II PHASE III PHASE III REF COMPANY NAME SENT RECEIVED RANGE SENT RANGE STATUS <S> <C> <C> <C> <C> <C> <C> <C> 1 6/8/99 6/18/99 $18-$22 6/28/99 2 6/11/99 6/21/99 $16-$19 6/28/99 3 6/8/99 6/21/99 $13-$16 6/28/99 4 6/8/99 6/17/99 $19-$22 6/28/99 5 6/9/99 6/22/99 $18-$19 6/28/99 6 8/10/99 8/13/99 $20 8/14/99 7 6/8/99 6/18/99 $15-$16 6/28/99 8 6/8/99 6/21/99 $15 6/28/99 9 6/8/99 6/18/99 $18-$22 6/28/99 10 6/8/99 6/18/99 $14-$15 6/28/99 </TABLE> - ------------------------------------------------------------------------------- RONEY & CO. PAGE 1 OF 1 INVESTMENT BANKING - ------------------------------------------------------------------------------- <PAGE> 64 - -------------------------------------------------------------------------------- TRANSACTION PARTICIPANT DETAILS PRESENTATION - -------------------------------------------------------------------------------- <PAGE> 65 JUNE 25, 1999 CONFIDENTIAL PRESENTATION TO SPECIAL COMMITTEE PROJECT TITAN <PAGE> 66 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- EXECUTIVE SUMMARY - -------------------------------------------------------------------------------- - Roney is pleased to report a successful completion of the first stage of the sale process for Titan. - We have conducted a broad auction process, initially contacting 73 financial investors and 15 strategic investors. Of those, 39 companies (5 strategic - 34 financial buyers) submitted a signed Confidentiality Agreement and received Confidential Summary Memorandums. In addition, we received seven confidentiality agreements with significant changes. The following chart details the status of the seven parties that we were unable to come to mutual terms on the confidentiality agreement: <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------ DATE CA CONF. AGR. COMPANY NAME RECEIVED ACCEPTED COMMENTS ------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> Advent International 6/3/99 Changes Were uncomfortable with entire agreement. ------------------------------------------------------------------------------------------------------------------------ AEA Investors, Inc. 6/3/99 Changes Did not agree with affiliates language. ------------------------------------------------------------------------------------------------------------------------ First Atlantic Capital, Ltd. 6/2/99 Changes Were uncomfortable with entire agreement. ------------------------------------------------------------------------------------------------------------------------ GTCR Golder Rauner, LLC 6/3/99 Changes Did not agree with affiliates language. ------------------------------------------------------------------------------------------------------------------------ Latona Associates, Inc. 6/7/99 Changes Were uncomfortable with entire agreement. ------------------------------------------------------------------------------------------------------------------------ Penske Capital Partners 6/2/99 Changes Did not agree with affiliates language. ------------------------------------------------------------------------------------------------------------------------ Thomas H. Lee Company 6/7/99 new - sign. req. Ultimately signed agreement but indicated lack of interest due to size prior to delivery of memorandum. ------------------------------------------------------------------------------------------------------------------------ </TABLE> At the Company's request Roney did not contact those Companies that were involved in the previous process conducted in 1997. In addition, at the Company's request, Dover Corporation was not contacted due to the discussions already in process. - The response has been very strong, and we have received 9 indications of interest from prospective buyers. 11 parties have not indicated whether or not they will be submitting an indication of interest. We are continuously contacting these parties and should have an understanding of their intentions by Monday June 28th, 1999. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 1 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 67 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- MARKETING PROGRAM OVERVIEW - -------------------------------------------------------------------------------- PRELIMINARY INDICATIONS OF INTEREST - All of the potential buyers who reviewed the Confidential Summary Information Memorandum were invited to submit preliminary indications of interest by Friday, June 18th. - All potential buyers were contacted by Roney the week of June 14th. - A total of 9 preliminary indications of interest were received by Tuesday, June 22nd. A summary review of the bidders and preliminary indications of interest is presented herein. - Concerns raised by potential buyers who chose not to bid focused primarily on automotive concentration, recent acquisition activity, and strategic fit. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 2 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 68 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- MARKETING PROGRAM OVERVIEW - -------------------------------------------------------------------------------- - Roney contacted a wide range of potential bidder including strategic buyers and financial investors. 88 parties were contacted and Confidential Summary Information Memorandums were sent to 39 of the 46 parties who responded. [BAR GRAPH] Financial Strategic --------- --------- Phase I Confidentiality Agreements Sent 73 15 Phase I Confidentiality Agreements Received 40 6 Phase II Confidential Summary Information Memorandums Sent 34 5 Phase II Indicatioins of Interest Received 8 1 - -------------------------------------------------------------------------------- RONEY & CO. PAGE 3 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 69 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- CONFIDENTIAL SUMMARY INFORMATION MEMORANDUMS SENT - -------------------------------------------------------------------------------- <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------------- CONFIDENTIAL SUMMARY INFORMATION MEMORANDUMS SENT (39) --------------------------------------------------------------------------------------------------------------------------- FINANCIAL (34) STRATEGIC (5) -------------- ------------- <S> <C> <C> - AMERICAN INDUSTRIAL PARTNERS - HARVEST PARTNERS, INC. - GROUPE VALFOND SA - APOLLO MANAGEMENT IV, L.P. - J.F. LEHMAN & COMPANY - HIDDEN CREEK INDUSTRIES - AURORA CAPITAL GROUP - KELSO & COMPANY - LINAMAR CORPORATION - BAIN CAPITAL, INC. - KIRTLAND CAPITAL PARTNERS - SIMPSON INDUSTRIES, INC. - BERKSHIRE PARTNERS, LLC - LEHMAN BROTHERS MERCHANT BANKING - TOMKINS PLC - BESSEMER PARTNERS & CO. - LEONARD GREEN & PARTNERS - CARRERAS, KESTNER & CO., LLC - LINSALATA CAPITAL PARTNERS - CASTLE HARLAN, INC. - METAL FORMING TECHNOLOGIES, INC. - CHARTER OAK CAPITAL PARTNERS, L.P. - ODYSSEY INVESTMENT PARTNERS, LLC - CITICORP VENTURE CAPITAL - QUESTOR MANAGEMENT COMPANY - CORNERSTONE EQUITY INVESTORS, LLC - SAUNDERS KARP & MEGRUE, L.P. - CORTEC MANAGEMENT LLC - STONINGTON PARTNERS, INC. - CRAVEY, GREEN & WAHLEN, INC. - THE CARLYLE GROUP - DLJ MERCHANT BANKING II, INC. - THE RIVERSIDE COMPANY - DUBILIER & COMPANY - THE VERITAS CAPITAL FUND L.P. - E.M. WARBURG, PINCUS & CO., LLC - WIND POINT PARTNERS - HARBOUR GROUP LTD. - WINGATE PARTNERS, L.P. --------------------------------------------------------------------------------------------------------------------------- LEGEND: ------- - PRELIMINARY INDICATION OF INTEREST SUBMITTED (9) - WILL NOT BE SUBMITTING (19) - NO RESPONSE OR REQUIRE ADDITIONAL INFORMATION (11) --------------------------------------------------------------------------------------------------------------------------- </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 4 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 70 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- POTENTIAL BUYER STATUS - -------------------------------------------------------------------------------- <TABLE> <CAPTION> SUMMARY OF REASONS FOR NOT SUBMITTING INDICATION OF INTEREST -------------------------------------------------------------------------------------------------------------------------- COMPANY REASON FOR NOT SUBMITTING INDICATION OF INTEREST --------------------------------------------------------------------------------------------------------------------------- <S> <C> Apollo Management IV, L.P. Size of transaction is not large enough. Bain Capital, Inc. Size of transaction is not large enough and does not fit with portfolio. Castle Harlan, Inc. Were not interested due to automotive concentration. Charter Oak Capital Partners, L.P. Did not believe that they could be competitive. Cornerstone Equity Investors, LLC Did not believe that they could be competitive. DLJ Merchant Banking II, LLC Did not provide a reason. Dubilier & Company Were not interested due to automotive concentration. Harbour Group Ltd. Were not interested due to automotive concentration and uncomfortable with process being performed shortly after recent acquisitions. J.F. Lehman & Company Not interested as they believed ACAM was too far removed from electronics business. Kelso & Company Did not provide a reason. --------------------------------------------------------------------------------------------------------------------------- </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 5 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 71 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- <TABLE> <CAPTION> SUMMARY OF REASONS FOR NOT SUBMITTING INDICATION OF INTEREST (CONTINUED) --------------------------------------------------------------------------------------------------------------------------- COMPANY REASON FOR NOT SUBMITTING INDICATION OF INTEREST --------------------------------------------------------------------------------------------------------------------------- <S> <C> Kirtland Capital Partners Did not provide a reason. Lehman Brothers Merchant Banking Did not provide a reason. Leonard Green & Partners Did not provide a reason. Linsalata Capital Partners Did not provide a reason. Metal Forming Technologies, Inc. Want to concentrate on their recent acquisitions. Questor Management Company Indicated they focus on difficult or distressed situations and did not believe this transaction provided that opportunity. Stonington Partners, Inc. Did not provide a reason. The Riverside Company Were not interested due to automotive concentration. Wingate Partners, L.P. Indicated they focus on difficult or distressed situations and did not believe this transaction provided that opportunity. --------------------------------------------------------------------------------------------------------------------------- </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 6 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 72 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PRELIMINARY INDICATIONS OF INTEREST SUMMARY - -------------------------------------------------------------------------------- <TABLE> <CAPTION> SUMMARY OF PRELIMINARY INDICATIONS OF INTEREST -------------------------------------------------------------------------------------------------------------------------------- IMPUTED OFFER PRICE COMPANY (per Share) STRUCTURE FINANCING COMMENTS -------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> $18 - $22 Stock Combination of equity and debt. Manages two funds with over $775 million of equity under management. The funds are blind pools and, therefore, require only Board approval. $16 - $19 Stock Combination of equity and debt. Manages a $761 million equity fund. Wants to participate in consolidation strategy. $13 - $16 Stock 30% - 40% equity provided by Would require recapitalization and Management. Debt structure. Current shareholder provided by would be required to contribute Bank. at least 10%. avoids the use of high yield debt. $19 - $22 Stock Senior Debt - $140 - $160 Recently acquired Subordinated Debt - $40 - $50 for Equity - $55 - $75 approximately 5x forecasted EBITDA. $18 - $19 Stock Debt and Equity Wholly-owned subsidiary of which allows a longer investment horizon. Significant transaction experience. </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 7 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 73 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PRELIMINARY INDICATIONS OF INTEREST SUMMARY - -------------------------------------------------------------------------------- <TABLE> <CAPTION> SUMMARY OF PRELIMINARY INDICATIONS OF INTEREST -------------------------------------------------------------------------------------------------------------------------------- IMPUTED OFFER PRICE COMPANY (per Share) STRUCTURE FINANCING COMMENTS -------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> $15 - $16 Stock is a leading contract manufacturer and high-yield debt underwriters supplier of complex precision and metal parts. Securities. $15 Stock Cash or combination of cash Publicly traded company based in and stock. As of . In 12/31/98, had $64.5 million acquired the credit available with , a subsidiary of for million. Current debt to equity is .85 and a market cap of $180 million. $18 - $22 Stock $14 - $15 Stock . Initial Knowledge of automotive industry. revolver and bridge loan on an interim basis until high yield market recovers. </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 8 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 74 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- FIRST ROUND BIDDERS - BUSINESS DESCRIPTIONS - -------------------------------------------------------------------------------- AMERICAN INDUSTRIAL PARTNERS American Industrial Partners Corporation ("AIP") manages American Industrial Partners Capital Funds I and II, L.P., a San Francisco based limited partnership. These funds have in excess of $775 million of equity capital under management. AIP seeks investments in a broad spectrum of opportunities, including management-backed recapitalizations, growth financings, leveraged acquisitions and joint ventures. AIP invests in a variety of industries but focuses on mature, primary market share companies. AURORA CAPITAL GROUP Aurora Capital Group is a private LBO investment firm founded in 1991 in Los Angeles, CA. Aurora has in excess of $950 million under management and invests in a variety of industries. Aurora's effort is focused on the disciplined analysis of industries where the principals believe they can acquire a base company in the $50-$250 million size range, attract strong management and create value by improving operations, increasing revenue through internal growth and the acquisition of weaker competitors. Aurora targets industries which have world-wide sales in excess of $1.5 billion, a fragmented competitor base and the presence of several large, experienced competitors from which strong management can be recruited. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 9 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 75 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- BESSEMER PARTNERS & CO. Bessemer Holdings, with over $2 billion in available equity capital, is managed by four general partners with broad experience in advising, financing and owning a wide range of business organizations in the United States and abroad. Bessemer's investment capital is provided by the general partners, Bessemer Securities, the primary limited partner; and several well-capitalized, globally influential investors including two financial institutions, a foreign sovereign and a multinational holding company. Corporate managements of Bessemer Holdings' portfolio companies also participate as equity investors alongside Bessemer Holdings. Since its founding in 1989, Bessemer Holdings has invested in thirty-five companies, including twenty-two "follow-on" acquisitions by its portfolio companies. These investments represent an aggregate transaction value of $3.7 billion, consisting of $2.5 billion of debt and $1.2 billion of equity, of which $925 million was its own and $450 million for others. These companies have spanned a wide range of industries including: energy services, chemical fertilizer, auto parts, satellite broadcasting, building products, medical products, wire and cable, shelving, paint applications, transaction processing and oil and gas exploration and production. CARRERAS, KESTNER & CO., LLC Carreras, Kestner & Co., LLC ("CK & Co.") is an Ohio limited liability company organized to purchase control positions in middle market companies and corporate spin-offs. The founding members of CK & Co. were formerly the senior managers of Sinter Metals, Inc. (now known as GKN Sinter Metals, Inc.). While at Sinter Metals, through nine acquisitions and organic growth, they grew the company from two US locations with $50 million in sales to 23 locations in North and South America and Europe with over $400 million in sales. CK & Co. acquired Hilite Industries, Inc. on June 1st, 1999. Hilite Industries designs, manufactures and sells a diversified line of highly engineered components and assemblies for the automotive industry including brake proportioning valves, electromagnetic clutches, machined components such as mounting brackets and pulleys, and specialty components and assemblies such as stampings, specialty springs and automated assemblies. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 10 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 76 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- FIRST ROUND BIDDERS - BUSINESS DESCRIPTIONS - -------------------------------------------------------------------------------- CITICORP VENTURE CAPITAL Citicorp Venture Capital, Ltd. ("CVC") is a wholly-owned subsidiary of Citibank. CVC, its affiliates and predecessors have been in the management leveraged buyout business since 1969 when they started the James River Corporation and have closed over 140 transactions. These transactions include Polyfibron Technologies, York International, International Channel Network, Mid Atlantic Coca-Cola, Seven-Up, A&W Root Beer, Amerisource, Euramax, Vision Metals, J&L Specialty Products, Mohawk Carpet, Cort Furniture Rental, Chromcraft/Revington, Brintec, Payless Cashways, Plantronics, Reliance Electric, Del Monte, Gilbarco, Galey & Lord, C.R. Anthony, Pamida, Specialty Retailing, Levitz Furniture, Elliott Turbomachninery, Sybron Chemical, Steak & Ale/Bennigans, Universal Health Services, Aviall, Zatarains, Frozen Specialties, Delco Remy America, Dallas Airmotive, and Ameripol Synpol. CVC's philosophy is to back strong management teams with whom it can create a close working relationship and assist those managers in the acquisition of a business. Due to CVC's unique structure, CVC is able to take a long-term perspective toward its investments, and not be tied to an artificial time horizon based on the need to raise another investment fund. CVC is committed to building its portfolio companies through strategic acquisitions, over 85% of CVC's companies have completed follow-on acquisitions. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 11 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 77 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- FIRST ROUND BIDDERS - BUSINESS DESCRIPTIONS - -------------------------------------------------------------------------------- SAUNDERS KARP & MEGRUE, L.P. Founded in 1990, Saunders Karp & Megrue (SKM), is a private equity investment firm with offices in New York and Connecticut, seeking investments in a broad spectrum of opportunities, including management-backed recapitalizations, growth financings, leveraged acquisitions and joint ventures utilizing its $500 million equity fund. SKM recently completed fundraising for its second equity fund, SKM Equity Fund II. Its first fund, the SK Equity Fund, was a $300 million fund. SKM portfolio companies include Precision Partners, a leading contract manufacturer and supplier of complex precision metal parts, tooling and assemblies for original equipment manufacturers. Precision's flexible manufacturing facilities and operating processes enable it to service customers in a wide range of industries and to aggressively pursue new customers in industries where Precision sees the potential for strong growth. Precision's customers include industry leader such as General Electric, New Venture Gear, Xerox, LucasVarity, Boeing and Caterpillar. Precision was formed through the acquisition of five contract manufacturers and is aggressively pursuing additional acquisitions as part of Precision's overall build-up strategy. Precision's 1998 pro forma revenues were approximately $134 million. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 12 OF 16 IVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 78 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- FIRST ROUND BIDDERS - BUSINESS DESCRIPTIONS - -------------------------------------------------------------------------------- SIMPSON INDUSTRIES, INC. Simpson Industries, Inc. supplies powertrains and chassis products to original equipment and Tier One manufacturers in the worldwide automotive and medium and heavy-duty diesel engine markets. The Company's engineered products are focused in the noise, vibration, and harshness; wheel-end and suspension; and modular engine assemblies groups. In June 1997, acquired the Vibration Attenuation Division of Holset Engineering, Ltd., a subsidiary of Cummins Engine Company, Inc. for $73.5 million. As of December 31, 1998, Simpson had approximately $64.5 million available credit with ABN Amro and a debt to equity ratio of .85. As of June 18, 1999, Simpson stock price was 9 15/16 representing a market capitalization of approximately $180 million and a P/E ratio of 11.7. Simpson's 52 week high and low stock price is 13 7/8 and 8 1/2 , respectively. THE VERITAS CAPITAL FUND L.P. The Veritas Capital Fund L.P. ("Veritas") is a New York limited partnership was organized to purchase control positions in middle market companies and corporate spin-offs. Veritas was funded with $175 million whose investors include public and private investors, financial institutions, as well as a distinguished group of retired chief executive officers including Red Poling, former CEO of Ford Motor Company. Veritas has focused on acquiring and developing a series of manufacturing and industrial technology companies, with investments such as Baltimore Marine Industries, Inc., Bar Technologies, Inc., Republic Engineered Steels, Inc., H. Koch & Sons Company, and recently, PEI Electronics, Inc. and Worthington Precision Metals, Inc. The cornerstone of Veritas' acquisition strategy is the formation of alliances with senior management and key shareholders of premier companies in order to create value through aggressive internal expansion and strategic add-on acquisitions and, as such, Veritas capitalizes their portfolio companies accordingly. As buyers, Veritas would focus and expect management's continued involvement. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 13 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 79 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- FIRST ROUND BIDDERS - BUSINESS DESCRIPTIONS - -------------------------------------------------------------------------------- WIND POINT PARTNERS Wind Point Partners is a Midwest-based private equity investment firm that specializes in financing privately-held enterprises with promising prospects for growth. Founded in 1983, Wind Point has invested in more than 50 private companies, including Toledo Molding and Die, in a wide range of industries. Wind Point has extensive experience in the automotive supply arena and focuses on identifying talented management, developing a relationship, and supporting management's efforts to increase enterprise value. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 14 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 80 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- POSITIONING ISSUES - -------------------------------------------------------------------------------- The following positioning issues were identified from preliminary discussions with transaction participants. These items could potentially effect valuation and represent points of discussion for the management presentation phase of the transaction process. - Extent management is willing to participate in the transaction; - Management experience and qualifications especially considering youth of management; - Manufacturing processes utilized by Autocam appear to be a barrier to entry into the market; - Risk of Tier One and OEM's bringing Autocam's manufacturing processes in-house; - Visibility of 2000 sales especially given lack of significant growth presented; - Financial projections for 2001/2002; - Opportunities for operating margin improvement; - Forecasted capital expenditure requirements of business and detail of assets available for sale; - Position of company on strategic programs that are well positioned for future growth such as electronic and other technologically advanced applications; - Product life cycle; - Sensitivity to transportation industry/Insulation against downturn in transportation industry. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 15 OF 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 81 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PROCESS TIMETABLE - -------------------------------------------------------------------------------- <TABLE> <CAPTION> PRELIMINARY SCHEDULE JUNE 1999 JULY 1999 AUGUST 1999 <S> <C> <C> <C> <C> <C> -------------------------- ------------------------- ------------------------- S M T W Th F S S M T W Th F S S M T W Th F S -------------------------- ------------------------- ------------------------- 1 2 3 4 5 1 2 3 -------------------------- ------------------------- ------------------------- 6 7 8 9 10 11 12 4 5 6 7 8 9 10 1 2 3 4 5 6 7 -------------------------- ------------------------- ------------------------- 13 14 15 16 17 18 19 11 12 13 14 15 16 17 8 9 10 11 12 13 14 -------------------------- ------------------------- ------------------------- 20 21 22 23 24 25 26 18 19 20 21 22 23 24 15 16 17 18 19 20 21 -------------------------- ------------------------- ------------------------- 27 28 29 30 25 26 27 28 29 30 31 22 23 24 25 26 27 28 -------------------------- ------------------------- ------------------------- 29 30 31 -------------------------- ------------------------- ------------------------- <CAPTION> SEPTEMBER 1999 OCTOBER 1999 <S> <C> <C> <C> -------------------------- ------------------------- S M T W Th F S S M T W Th F S -------------------------- ------------------------- 1 2 3 4 1 2 -------------------------- ------------------------- 5 6 7 8 9 10 11 3 4 5 6 7 8 9 -------------------------- ------------------------- 12 13 14 15 16 17 18 10 11 12 13 14 15 16 -------------------------- ------------------------- 19 20 21 22 23 24 25 17 18 19 20 21 22 23 -------------------------- ------------------------- 26 27 28 29 30 24 25 26 27 28 29 30 -------------------------- ------------------------- 31 -------------------------- ------------------------- </TABLE> - June 18th Preliminary Indications of Interest Received - June 28th Phase III Letter and Confidential Offering Memorandums Mailed - July 12th Phase III Deadline - Final Indications of Interest - Week of July 19th Management Presentations and Distribution of through the Draft Purchase Agreement - Week of August 16th Data Room Visitation and Due Diligence - August 23rd Final Indications of Interest and Merger Agreement Comments - September 6th Selection of Transaction Partners - Hart Scott Filed - -------------------------------------------------------------------------------- RONEY & CO. PAGE 16 0F 16 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 82 IIF-MARKETING PHASE Phase III Letter and Offering Memorandum Sent <PAGE> 83 - -------------------------------------------------------------------------------- PHASE III LETTER - -------------------------------------------------------------------------------- <PAGE> 84 June 28, 1999 Page 2 of 2 June 29, 1999 <<Salutation>> <<ContactFirstName>> <<ContactLastName>> <<Title>> <<Company_Name>> <<Address>> <<Address1>> <<City>>, <<StateorProvince>> <<PostalCode>> PRIVATE & CONFIDENTIAL Dear <<Salutation>> <<ContactLastName>>: Roney & Co. ("Roney") has been retained by Autocam Corporation ("Autocam" or the "Company"), on an exclusive basis, to manage a business combination ("Business Combination") process for the Company. Having received and reviewed your response to Phase II, we are now formally extending an invitation to you as one of a select group of potential transaction participants ("Transaction Participants") to participate in Phase III - Due Diligence Phase of the Business Combination process. As part of this phase, the Company has instructed us to provide you with the enclosed Confidential Offering Memorandum ("Offering Memorandum"). In receiving the Offering Memorandum, you continue to be bound by the terms of the Confidentiality Agreement previously signed by you and forwarded to Roney. The possible Business Combination of Autocam Corporation is highly confidential and has not been publicly announced. United States securities laws prohibit any person who has material, non-public information concerning an issuer of publicly held securities from purchasing or selling such securities. Investigations during Phase III will be primarily based upon information contained in the enclosed Offering Memorandum with clarification, if any, supplied by Roney. All contact and requests should be directed to Roney. THE COMPANY IS NOT TO BE CONTACTED UNDER ANY CIRCUMSTANCES. These requests will be handled on a case by case basis. If you continue to be interested in pursuing a transaction, please submit to Roney a final offer letter containing the following: TRANSACTION STRUCTURE: The transaction will be structured as a sale of stock. FORM OF CONSIDERATION: The consideration to be received by the Shareholders will be cash. VALUATION/INVESTMENT: Method(s) utilized to arrive at the valuation conclusion. OUTSIDE ADVISORS: List of any outside advisors, including investment bankers, financing sources, accountants and legal counsel. CONTINGENCIES: Any due diligence, financing or other contingencies. MISCELLANEOUS: Any other factors you deem relevant. In assessing the qualifications of the parties who will be invited to submit formal proposals, the Company and its advisors will consider the above mentioned factors as well as other factors as may be deemed relevant. <PAGE> 85 June 29, 1999 Page 2 of 2 The offer letters should be submitted NO LATER THAN MONDAY, JULY 19, 1999 and addressed to: Mr. James C. Penman Managing Director of Corporate Finance Roney & Co. One Griswold Detroit, MI 48226 Tel: (313) 225-5746 Fax: (313) 963-2303 Shortly after the receipt of the final offer letters, Roney will have dialogue with those parties who have submitted offers as to whether or not they will be invited to further participate in Phase III. These Transaction Participants will then be given an opportunity to view a management presentation, and to perform comprehensive due diligence, including having access to the data room containing additional confidential information. Prior to the completion of the Phase III, the selected Transaction Participants will be asked to submit a final offer, subject to the execution of a definitive agreement. This letter should contain the transaction structure, purchase price, form of payment, contingencies, and any other relevant factors. Additionally, Roney will distribute a Model Purchase Agreement for your review. Following receipt of final offers, and review of comments on the Model Purchase Agreement, the Company anticipates entering into negotiations and proceeding immediately to the execution of a definitive agreement. The following summarizes the timeline that is anticipated in connection with the transaction: DATE ITEM OF IMPORTANCE July 19, 1999 Phase III Deadline - Offer Letter Deadline Aug. 2 - Aug. 13, 1999 Management Presentations Due Diligence Begins / Data Room Visitation Model Purchase Agreement Distributed Method of Affecting Transaction Defined August 27, 1999 Purchase Agreement Signed - Hart Scott Filing if Necessary It should be noted that the Company expressly reserves the right at any time to modify the procedures described herein, to amend the terms of sale, to terminate the sale, to terminate discussions with any or all prospective Transaction Participants, to reject any or all proposals, or to reopen the transaction process at any time. Any questions or comments regarding the Transaction or the process should be directed to the individuals at Roney & Co. listed below. NO EMPLOYEES OF THE COMPANY OR ITS SUBSIDIARIES, SHOULD BE CONTACTED DIRECTLY. James C. Penman C. Kirk Haggarty Ty T. Clutterbuck Managing Director Director Associate Director (313) 225-5746 (313) 225-5748 (313) 225-5751 Very truly yours, [RONEY & CO. LOGO] James C. Penman Managing Director Enclosure <PAGE> 86 - -------------------------------------------------------------------------------- OFFERING MEMORANDUMS SENT - ------------------------------------------------------------------------------- <PAGE> 87 - -------------------------------------------------------------------------------- PROJECT TITAN Thursday, September 02, 1999 PHASE III PARTICIPANTS <TABLE> <CAPTION> - ------------------------------------------------------------------------------------------------------------------------------------ REF COMPANY NAME EXECUTIVE NAME EXECUTIVE TITLE PHONE CATEGORY ==================================================================================================================================== <S> <C> <C> <C> <C> 1 Managing Director Financial Buyer 2 Principal Financial Buyer 3 President Financial Buyer 4 Treasurer Financial Buyer 5 President Financial Buyer 6 Vice President Strategic Buyer 7 Partner Financial Buyer 8 VP and CFO Strategic Buyer 9 Partner Financial Buyer 10 Managing Director Financial Buyer </TABLE> <TABLE> <CAPTION> - -------------------------------------------------------------------------------------------------------------------------------- PHASE II PHASE II PHASE II PHASE III PHASE III SENT RECEIVED RANGE SENT RANGE STATUS ================================================================================================================================ <S> <C> <C> <C> <C> <C> <C> 1 6/8/99 6/18/99 $18-$22 6/28/99 2 6/11/99 6/21/99 $16-$19 6/28/99 3 6/8/99 6/21/99 $13-$16 6/28/99 4 6/8/99 6/17/99 $19-$22 6/28/99 5 6/9/99 6/22/99 $18-$19 6/28/99 6 8/10/99 8/13/99 $20 8/14/99 7 6/8/99 6/18/99 $15-$16 6/28/99 8 6/8/99 6/21/99 $15 6/28/99 9 6/8/99 6/18/99 $18-$22 6/28/99 10 6/8/99 6/18/99 $14-$15 6/28/99 - -------------------------------------------------------------------------------------------------------------------------------- </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 1 OF 1 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 88 IIG - MARKETING PHASE Phase III Indications of Interest <PAGE> 89 - -------------------------------------------------------------------------------- PHASE III INDICATIONS OF INTEREST - -------------------------------------------------------------------------------- <PAGE> 90 - -------------------------------------------------------------------------------- PROJECT TITAN PHASE III - SUMMARY OF RESPONSES (C) - -------------------------------------------------------------------------------- <TABLE> <CAPTION> -------------------------------- Range of Total Consideration Shares Options Total -------------------------------- Transaction Participant Assumed Assumed w/Options Low Offer High Offer - ---------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> 6,300,000 0 6,300,000 $253,950,000 $266,550,000 (Need to call regarding shares) D 6,300,000 700,000 7,000,000 $220,000,000 $240,000,000 (Shares assumed to be 7.0mm) A 6,300,000 700,000 7,000,000 $220,000,000 $235,000,000 (Shares assumed to be 7.0mm) 6,300,000 0 6,300,000 $250,000,000 $290,000,000 (Need to call regarding shares) B 6,600,000 0 6,600,000 $240,000,000 $240,000,000 (Need to call regarding shares) E 6,300,000 0 6,300,000 $244,500,000 $244,500,000 (Need to call regarding shares) 6,600,000 0 6,600,000 $218,400,000 $225,000,000 (Shares assumed to be 6.6mm) 6,300,000 0 6,300,000 $219,300,000 $219,300,000 (Need to call regarding shares) 6,300,000 0 6,300,000 $244,500,000 $244,500,000 (Need to call regarding shares) 6,300,000 0 6,300,000 $225,600,000 $231,900,000 (Need to call regarding shares) </TABLE> <TABLE> <CAPTION> --------------------------------------------- Autocam ---------------------------------------------- 3/31/99 Option Net Transaction Participant Debt Proceeds Debt - -------------------------------------------------------------------------------------------------- <S> <C> <C> <C> $118,500,000 $0 $118,500,000 (Need to call regarding shares) $118,500,000 ($7,000,000) $111,500,000 (Shares assumed to be 7.0mm) $118,500,000 ($7,000,000) $111,500,000 (Shares assumed to be 7.0mm) $118,500,000 $0 $118,500,000 (Need to call regarding shares) $118,500,000 $0 $118,500,000 (Need to call regarding shares) $118,500,000 $0 $118,500,000 (Need to call regarding shares) $118,500,000 $0 $118,500,000 (Shares assumed to be 6.6mm) $118,500,000 $0 $118,500,000 (Need to call regarding shares) $118,500,000 $0 $118,500,000 (Need to call regarding shares) $118,500,000 $0 $118,500,000 (Need to call regarding shares) </TABLE> <TABLE> <CAPTION> ------------------------------- Equity Consideration ------------------------------- Applicable Range Transaction Participant Low Offer High Offer in Letter - -------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> $135,450,000 $148,050,000 $21.50 $23.50 (Need to call regarding shares) $21.50 $23.50 $108,500,000 $128,500,000 $220mm $240mm (Shares assumed to be 7.0mm) $15.50 $18.36 $108,500,000 $123,500,000 $15.50 $17.50 (Shares assumed to be 7.0mm) $15.50 $17.64 $131,500,000 $171,500,000 $250mm $290mm (Need to call regarding shares) $20.87 $27.22 $121,500,000 $121,500,000 $18.00 $19.00 (Need to call regarding shares) $18.41 $18.41 $126,000,000 $126,000,000 $20.00 $20.00 (Need to call regarding shares) $20.00 $20.00 $99,900,000 $106,500,000 $15.00 $16.00 (Shares assumed to be 6.6mm) $15.14 $16.14 $100,800,000 $100,800,000 $16.00 $16.00 (Need to call regarding shares) $16.00 $16.00 $126,000,000 $126,000,000 $20.00 $20.00 (Need to call regarding shares) $20.00 $20.00 $107,100,000 $113,400,000 $17.00 $18.00 (Need to call regarding shares) $17.00 $18.00 </TABLE> NOTES: A. has requested the 1st or 2nd Management Presentation slot. B. is only available on August 5th for a Management Presentation. C. Roney has chosen to not clarify the shares outstanding issue with the respondants until they are further along in the process. D. Aurora indicated that they would be able to increase their valuation range based upon a successful management presentation meeting. E. The responses were received in early August, with their revised indication of interest being received on 8/19/99. <PAGE> 91 - -------------------------------------------------------------------------------- PHASE III PRESENTATION - -------------------------------------------------------------------------------- <PAGE> 92 JULY 29, 1999 CONFIDENTIAL PRESENTATION TO SPECIAL COMMITTEE PROJECT TITAN <PAGE> 93 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- EXECUTIVE SUMMARY - -------------------------------------------------------------------------------- REVISED INDICATIONS OF INTEREST - PHASE III (AS OF JULY 27TH) - - All 9 parties that expressed interest in Phase II, in the form of a preliminary indication of interest, were invited to participate in Phase III, and received a copy of the Confidential Offering Memorandum. Roney requested that these parties submit revised indications of interest by Monday, July 19th. - - All potential buyers were contacted by Roney the weeks of July 5th and 12th. - - A total of 8 revised indications of interest were received by Tuesday, July 20th. A summary review of the bidders and preliminary and revised indications of interest is presented herein. - - The Veritas Capital Fund, L.P. did not submit a revised indication of interest. Roney received word that there was a death in the family of the individual responsible for this transaction within their group, and that they would call us Monday July 26th. Roney did not receive a phone call, and has left another message with this individual. - - The response has been very strong, and we received 9 indications of interest from prospective buyers at the completion of Phase II. Of those 9 parties, 8 submitted revised indications of interest, based upon their review of the Confidential Offering Memorandum, on Monday July 19th, 1999. The Veritas Capital Fund, L.P. is the only group that provided a preliminary indication of interest in Phase II, but did not submit a revised indication during Phase III. Roney is attempting to further understand the reasons behind their implied lack of interest and hopes to have an answer by July 30th, 1999. SUPPLEMENTAL INFORMATION: Veritas called Roney on July 28th and indicated that they were willing to pay $20.00 per share, and wanted to proceed with the process. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 1 OF 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 94 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- MARKETING PROGRAM OVERVIEW - -------------------------------------------------------------------------------- - Roney contacted a wide range of potential bidders including strategic buyers and financial investors. 88 parties were contacted and Confidential Summary Information Memorandums were sent to 39 of the 46 parties who responded. In addition, the Confidential Offering Memorandums were sent to all 9 parties that presented Phase II preliminary indications of interest. [BAR GRAPH] <TABLE> <CAPTION> Phase I Phase II Phase I Confidentiality Summary Phase II Phase III Offering Phase III Confidentiality Agreements Memorandums Indications of Memorandums Indications of Agreements Sent Received Sent Interest Received Sent Interest Received <S> <C> <C> <C> <C> <C> <C> Financial 73 40 34 8 8 7 Strategic 15 6 5 1 1 1 </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 2 OF 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 95 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- CONFIDENTIAL OFFERING MEMORANDUMS SENT - PHASE III - -------------------------------------------------------------------------------- CONFIDENTIAL OFFERING MEMORANDUMS SENT (9) - -------------------------------------------------------------------------------- <TABLE> <CAPTION> FINANCIAL (8) STRATEGIC (1) ------------- ------------- <S> <C> <C> - - - - - - - - - - - - - - - -------------------------------------------------------------------------------------------------------- </TABLE> LEGEND: ------- - - REVISED INDICATION OF INTEREST SUBMITTED (8) - - NO RESPONSE (1) - -------------------------------------------------------------------------------- SUMMARY OF REASONS FOR NOT SUBMITTING A REVISED INDICATION OF INTEREST - -------------------------------------------------------------------------------- Company Reason for not Submitting Indication of Interest - -------------------------------------------------------------------------------- There was a death in the family of the principal responsible for the transaction, and he was supposed to contact us early in the week of . Roney received a call on from indicating that they were interested in moving forward with a $20.00 per share price. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 3 OF 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 96 PROJECT TITAN CONFIDENTIAL - ------------------------------------------------------------------------------- INDICATIONS OF INTEREST SUMMARY - PHASE III <TABLE> - ------------------------------------------------------------------------------------------------------------------------------------ <CAPTION> SUMMARY OF INDICATIONS OF INTEREST - PHASE III ---------------------------------------------------------------------------------------------------------------------------------- Phase II Phase III Imputed Imputed Offer Price Offer Price Phase III Company (per Share) (per Share) Structure FINANCING COMMENTS - ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> $18 - $22 $21.50 - $23.50 Stock Purchase Combination of Manages two funds equity and debt. with over $775 Utilize several million of equity sources for debt. under management. The funds are blind pools and, therefore, require only Board approval. $16 - $19 $16 - $19 Stock Purchase Combination of Manages a $761 equity and debt. million equity fund. DEBT PROVIDED Wants to participate BY in consolidation strategy. $13 - $16 $15.50 - $17.50 Stock Purchase 30% - 40% equity Would require provided by recapitalization and structure. Current Management. DEBT shareholder would be PROVIDED BY required to . contribute at least 10%. avoids the use of high yield debt. $19 - $22 $19 - $25 Stock Purchase Senior Debt/ Recently acquired Subordinated Debt/ Equity would be for utilized. approximately 5x NO HIGH YIELD DEBT. forecasted EBITDA. IS THE DEBT PROVIDER. $18 - $19 $18 - $19 Stock Purchase Debt and Equity Wholly-owned structure. DEBT subsidiary of TO BE PROVIDED BY which . allows a longer investment horizon. Significant transaction experience. </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 4 of 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 97 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- INDICATIONS OF INTEREST SUMMARY - PHASE III - -------------------------------------------------------------------------------- <TABLE> <CAPTION> SUMMARY OF INDICATIONS OF INTEREST - PHASE III ---------------------------------------------------------------------------------------------------------------------------------- PHASE II PHASE III IMPUTED IMPUTED OFFER PRICE OFFER PRICE PHASE III PHASE III COMPANY (per Share) (per Share) STRUCTURE FINANCING COMMENTS - ------------------------------------------------------------------------------------------------------------------------------------ <C> <C> <C> <C> <C> $15 - $16 $15 - $16 Stock Purchase WILL NOT CHANGE THEIR OFFER PRICE OF $15-$16. Do not high-yield debt expect their offer underwriters to move above this IS READY TO range, even after PROVIDE THEM WITH A the due diligence FINANCING COMMITMENT. phase. If they are not competitive, they would like to know as soon as possible. $15 $16 Stock Purchase Proposed utilizing 60% Publicly traded CASH and 40% company based in STOCK which equates to . In $9.60 cash and $6.40 , acquired stock. the Valuation level assumes $118.5mm of long-term obligations. ., IS THEIR LEAD BANK. . STOCK IS TRADING AT PER SHARE WITH A P/E OF AS OF JULY 19TH, 1999. $18 - $22 NO RESPONSE Stock Purchase BANK includes IS THEIR LEAD BANK. ($20 - 7/28) , Inc. in its portfolio. $14 - $15 $17 - $18 Stock Purchase . Purchase three Initial revolver and after-market bridge loan on an companies from interim basis until . high yield market recovers. </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 5 of 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 98 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PHASE III BIDDERS - BUSINESS DESCRIPTIONS - -------------------------------------------------------------------------------- AMERICAN INDUSTRIAL PARTNERS American Industrial Partners Corporation ("AIP") manages American Industrial Partners Capital Funds I and II, L.P., a San Francisco based limited partnership. These funds have in excess of $775 million of equity capital under management. AIP seeks investments in a broad spectrum of opportunities, including management-backed recapitalizations, growth financings, leveraged acquisitions and joint ventures. AIP invests in a variety of industries but focuses on mature, primary market share companies. AURORA CAPITAL GROUP Aurora Capital Group is a private LBO investment firm founded in 1991 in Los Angeles, CA. Aurora has in excess of $950 million under management and invests in a variety of industries. Aurora's effort is focused on the disciplined analysis of industries where the principals believe they can acquire a base company in the $50-$250 million size range, attract strong management and create value by improving operations, increasing revenue through internal growth and the acquisition of weaker competitors. Aurora targets industries which have world-wide sales in excess of $1.5 billion, a fragmented competitor base and the presence of several large, experienced competitors from which strong management can be recruited. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 6 OF 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 99 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PHASE III BIDDERS - BUSINESS DESCRIPTIONS - -------------------------------------------------------------------------------- BESSEMER PARTNERS & CO. Bessemer Holdings, with over $2 billion in available equity capital, is managed by four general partners with broad experience in advising, financing and owning a wide range of business organizations in the United States and abroad. Bessemer's investment capital is provided by the general partners, Bessemer Securities, the primary limited partner; and several well-capitalized, globally influential investors including two financial institutions, a foreign sovereign and a multinational holding company. Corporate managements of Bessemer Holdings' portfolio companies also participate as equity investors alongside Bessemer Holdings. Since its founding in 1989, Bessemer Holdings has invested in thirty-five companies, including twenty-two "follow-on" acquisitions by its portfolio companies. These investments represent an aggregate transaction value of $3.7 billion, consisting of $2.5 billion of debt and $1.2 billion of equity, of which $925 million was its own and $450 million for others. These companies have spanned a wide range of industries including: energy services, chemical fertilizer, auto parts, satellite broadcasting, building products, medical products, wire and cable, shelving, paint applications, transaction processing and oil and gas exploration and production. CARRERAS, KESTNER & CO., LLC Carreras, Kestner & Co., LLC ("CK & Co.") is an Ohio limited liability company organized to purchase control positions in middle market companies and corporate spin-offs. The founding members of CK & Co. were formerly the senior managers of Sinter Metals, Inc. (now known as GKN Sinter Metals, Inc.). While at Sinter Metals, through nine acquisitions and organic growth, they grew the company from two US locations with $50 million in sales to 23 locations in North and South America and Europe with over $400 million in sales. CK & Co. acquired Hilite Industries, Inc. on June 1st, 1999. Hilite Industries designs, manufactures and sells a diversified line of highly engineered components and assemblies for the automotive industry including brake proportioning valves, electromagnetic clutches, machined components such as mounting brackets and pulleys, and specialty components and assemblies such as stampings, specialty springs and automated assemblies. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 7 OF 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 100 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PHASE III BIDDERS - BUSINESS DESCRIPTIONS - -------------------------------------------------------------------------------- CITICORP VENTURE CAPITAL Citicorp Venture Capital, Ltd. ("CVC") is a wholly-owned subsidiary of Citibank. CVC, its affiliates and predecessors have been in the management leveraged buyout business since 1969 when they started the James River Corporation and have closed over 140 transactions. These transactions include Polyfibron Technologies, York International, International Channel Network, Mid Atlantic Coca-Cola, Seven-Up, A&W Root Beer, Amerisource, Euramax, Vision Metals, J&L Specialty Products, Mohawk Carpet, Cort Furniture Rental, Chromcraft/Revington, Brintec, Payless Cashways, Plantronics, Reliance Electric, Del Monte, Gilbarco, Galey & Lord, C.R. Anthony, Pamida, Specialty Retailing, Levitz Furniture, Elliott Turbomachninery, Sybron Chemical, Steak & Ale/Bennigans, Universal Health Services, Aviall, Zatarains, Frozen Specialties, Delco Remy America, Dallas Airmotive, and Ameripol Synpol. CVC's philosophy is to back strong management teams with whom it can create a close working relationship and assist those managers in the acquisition of a business. Due to CVC's unique structure, CVC is able to take a long-term perspective toward its investments, and not be tied to an artificial time horizon based on the need to raise another investment fund. CVC is committed to building its portfolio companies through strategic acquisitions, over 85% of CVC's companies have completed follow-on acquisitions. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 8 OF 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 101 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PHASE III BIDDERS - BUSINESS DESCRIPTIONS - -------------------------------------------------------------------------------- SAUNDERS KARP & MEGRUE, L.P. Founded in 1990, Saunders Karp & Megrue (SKM), is a private equity investment firm with offices in New York and Connecticut, seeking investments in a broad spectrum of opportunities, including management-backed recapitalizations, growth financings, leveraged acquisitions and joint ventures utilizing its $500 million equity fund. SKM recently completed fundraising for its second equity fund, SKM Equity Fund II. Its first fund, the SK Equity Fund, was a $300 million fund. SKM portfolio companies include Precision Partners, a leading contract manufacturer and supplier of complex precision metal parts, tooling and assemblies for original equipment manufacturers. Precision's flexible manufacturing facilities and operating processes enable it to service customers in a wide range of industries and to aggressively pursue new customers in industries where Precision sees the potential for strong growth. Precision's customers include industry leader such as General Electric, New Venture Gear, Xerox, LucasVarity, Boeing and Caterpillar. Precision was formed through the acquisition of five contract manufacturers and is aggressively pursuing additional acquisitions as part of Precision's overall build-up strategy. Precision's 1998 pro forma revenues were approximately $134 million. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 9 OF 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 102 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PHASE III BIDDERS - BUSINESS DESCRIPTIONS - -------------------------------------------------------------------------------- SIMPSON INDUSTRIES, INC. Simpson Industries, Inc. supplies powertrains and chassis products to original equipment and Tier One manufacturers in the worldwide automotive and medium and heavy-duty diesel engine markets. The Company's engineered products are focused in the noise, vibration, and harshness; wheel-end and suspension; and modular engine assemblies groups. In June 1997, acquired the Vibration Attenuation Division of Holset Engineering, Ltd., a subsidiary of Cummins Engine Company, Inc. for $73.5 million. As of December 31, 1998, Simpson had approximately $64.5 million available credit with ABN Amro and a debt to equity ratio of .85. As of July 19, 1999, Simpson stock price was 10 3/4 representing a market capitalization of approximately $180 million and a P/E ratio of 11.7. Simpson's 52 week high and low stock price is 13 7/8 and 8 1/2 , respectively. THE VERITAS CAPITAL FUND L.P. The Veritas Capital Fund L.P. ("Veritas") is a New York limited partnership was organized to purchase control positions in middle market companies and corporate spin-offs. Veritas was funded with $175 million whose investors include public and private investors, financial institutions, as well as a distinguished group of retired chief executive officers including Red Poling, former CEO of Ford Motor Company. Veritas has focused on acquiring and developing a series of manufacturing and industrial technology companies, with investments such as Baltimore Marine Industries, Inc., Bar Technologies, Inc., Republic Engineered Steels, Inc., H. Koch & Sons Company, and recently, PEI Electronics, Inc. and Worthington Precision Metals, Inc. The cornerstone of Veritas' acquisition strategy is the formation of alliances with senior management and key shareholders of premier companies in order to create value through aggressive internal expansion and strategic add-on acquisitions and, as such, Veritas capitalizes their portfolio companies accordingly. As buyers, Veritas would focus and expect management's continued involvement. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 10 OF 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 103 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PHASE III BIDDERS - BUSINESS DESCRIPTIONS - -------------------------------------------------------------------------------- WIND POINT PARTNERS Wind Point Partners is a Midwest-based private equity investment firm that specializes in financing privately-held enterprises with promising prospects for growth. Founded in 1983, Wind Point has invested in more than 50 private companies, including Toledo Molding and Die, in a wide range of industries. Wind Point has extensive experience in the automotive supply arena and focuses on identifying talented management, developing a relationship, and supporting management's efforts to increase enterprise value. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 11 OF 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 104 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- POSITIONING ISSUES - -------------------------------------------------------------------------------- The following positioning issues were identified from preliminary discussions with transaction participants. These items could potentially effect valuation and represent points of discussion for the management presentation phase of the transaction process. - - Extent management is willing to participate in the transaction; - - Management experience and qualifications especially considering youth of management; - - Manufacturing processes utilized by Autocam appear to be a barrier to entry into the market; o Risk of Tier One and OEM's bringing Autocam's manufacturing processes in-house; - - Visibility of 2000/2001 sales especially given lack of significant growth presented; - - Financial projections for 2001/2002; - - Opportunities for operating margin improvement; - - Forecasted capital expenditure requirements of business and detail of assets available for sale; - - Position of company on strategic programs that are well positioned for future growth such as electronic and other technologically advanced applications; - - Product life cycle; - - Sensitivity to transportation industry/Insulation against downturn in transportation industry. - -------------------------------------------------------------------------------- RONEY & CO. PAGE 12 OF 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 105 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PROCESS TIMETABLE - PHASE III DRAFT #3, 09/01/99-2:47 PM <TABLE> <CAPTION> - ----------------------------------------------------------------------------------------- PRELIMINARY SCHEDULE JULY 1999 AUGUST 1999 SEPTEMBER 1999 <S> <C> <C> <C> <C> <C> - --------------------------- --------------------------- -------------------------- S M T W Th F S S M T W Th F S S M T W Th F S - --------------------------- --------------------------- -------------------------- 1 2 3 1 2 3 4 - --------------------------- --------------------------- -------------------------- 4 5 6 7 8 9 10 1 2 3 4 5 6 7 5 6 7 8 9 10 11 - --------------------------- --------------------------- -------------------------- 11 12 13 14 15 16 17 8 9 10 11 12 13 14 12 13 14 15 16 17 18 - --------------------------- --------------------------- -------------------------- 18 19 20 21 22 23 24 15 16 17 18 19 20 21 19 20 21 22 23 24 25 - --------------------------- --------------------------- -------------------------- 25 26 27 28 29 30 31 22 23 24 25 26 27 28 26 27 28 29 30 - --------------------------- --------------------------- -------------------------- 29 30 31 - --------------------------- --------------------------- -------------------------- <CAPTION> OCTOBER 1999 NOVEMBER 1999 <S> <C> <C> <C> - --------------------------- --------------------------- S M T W Th F S S M T W Th F S - --------------------------- --------------------------- 1 2 1 2 3 4 5 6 - --------------------------- -------------------------- 3 4 5 6 7 8 9 7 8 9 10 11 12 13 - --------------------------- -------------------------- 10 11 12 13 14 15 16 14 15 16 17 18 19 20 - --------------------------- -------------------------- 17 18 19 20 21 22 23 21 22 23 24 25 26 27 - --------------------------- -------------------------- 24 25 26 27 28 29 30 28 29 30 - --------------------------- -------------------------- 31 - --------------------------- -------------------------- </TABLE> <TABLE> <CAPTION> KEY DATES (TIMES) EVENTS LOCATION - ------------------- ------ -------- <S> <C> <C> <C> - - August 2nd MANAGEMENT PRESENTATION DRY RUN @ 5:00PM (Hilton Airport) THORNAPPLE RM - - August 3rd AMERICAN INDUSTRIAL PARTNERS - Management Presentation / Facility Tour THORNAPPLE RM - - August 4th & 5th AMERICAN INDUSTRIAL PARTNERS - Data Room DICKINSON WRIGHT - - August 6th AURORA CAPITAL PARTNERS - Management Presentation / Facility Tour THORNAPPLE RM - - To be scheduled AURORA CAPITAL PARTNERS - Data Room DICKINSON WRIGHT - - August 9th WIND POINT PARTNERS - Management Presentation / Facility Tour KENTWOOD RM - - August 10th & 11th WIND POINT PARTNERS - Data Room Visitation DICKINSON WRIGHT - - August 11th CARRERAS, KESTNER & CO., LLC - Management Presentation / Facility Tour KENTWOOD RM - - August 12th & 13th CARRERAS, KESTNER & CO., LLC - Data Room Visitation DICKINSON WRIGHT - - August 16th VERITAS CAPITAL - Management Presentation / Facility Tour KENTWOOD RM - - August 17th & 18th VERITAS CAPITAL - Data Room DICKINSON WRIGHT - - - Friday August 27rd - DEADLINE FOR RECEIPT OF FINAL PROPOSALS AND COMMENTS TO THE PURCHASE AGREEMENT - - Represents Management Presentation Dates </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 13 of 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 106 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- <TABLE> <CAPTION> COMPANY NAME PARTICIPANTS (TO BE COMPLETED) <S> <C> AMERICAN INDUSTRIAL PARTNERS AL BERRY - MANAGING DIRECTOR (AIP) (August 3rd - Management Mtg.) STEVE TARINO - ASSOCIATE (AIP) BILL GURLEY - CEO (STANADYNE) (August 4th & 5th - Data Room) MIKE BOYER - CFO (STANADYNE) BILL KELLY - SENIOR VP - PUMP DIVISION (STANADYNE) JOE PAGININI - GENERAL MANAGER (STANADYNE) AUDITORS - DELOITTE & TOUCHE (DATA ROOM ONLY) AURORA CAPITAL PARTNERS JOHN MAPES - PRINCIPAL (August 6th - Management Mtg.) WIND POINT PARTNERS ROBERT CUMMINGS - MANAGING DIRECTOR (August 9th - Management Mtg.) CARRERAS, KESTNER & CO., LLC JOSEPH CARRERAS - CHAIRMAN & CEO (August 11th - Management Mtg.) RON CAMPBELL - TREASURER VERITAS CAPITAL FUND TOM CAMPBELL - VERITAS (August 16th - Management Mtg.) </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 14 OF 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 107 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PROCESS TIMETABLE - SPECIAL COMMITTEE DRAFT #3, 09/01/99-2:47 PM - -------------------------------------------------------------------------------- <TABLE> <CAPTION> PRELIMINARY SCHEDULE JULY 1999 AUGUST 1999 SEPTEMBER 1999 <S> <C> <C> <C> <C> <C> - ----------------------------- ---------------------------- ---------------------------- S M T W Th F S S M T W Th F S S M T W Th F S - ----------------------------- ---------------------------- ---------------------------- 1 2 3 1 2 3 4 - ----------------------------- ---------------------------- ---------------------------- 4 5 6 7 8 9 10 1 2 3 4 5 6 7 5 6 7 8 9 10 11 - ----------------------------- ---------------------------- ---------------------------- 11 12 13 14 15 16 17 8 9 10 11 12 13 14 12 13 14 15 16 17 18 - ----------------------------- ---------------------------- ---------------------------- 18 19 20 21 22 23 24 15 16 17 18 19 20 21 19 20 21 22 23 24 25 - ----------------------------- ---------------------------- ---------------------------- 25 26 27 28 29 30 31 22 23 24 25 26 27 28 26 27 28 29 30 - ----------------------------- ---------------------------- ---------------------------- 29 30 31 - ----------------------------- ---------------------------- ---------------------------- <CAPTION> OCTOBER 1999 NOVEMBER 1999 <S> <C> <C> <C> - ---------------------------- ---------------------------- S M T W Th F S S M T W Th F S - ---------------------------- ---------------------------- 1 2 1 2 3 4 5 6 - ---------------------------- ---------------------------- 3 4 5 6 7 8 9 7 8 9 10 11 12 13 - ---------------------------- ---------------------------- 10 11 12 13 14 15 16 14 15 16 17 18 19 20 - ---------------------------- ---------------------------- 17 18 19 20 21 22 23 21 22 23 24 25 26 27 - ---------------------------- ---------------------------- 24 25 26 27 28 29 30 28 29 30 - ---------------------------- ---------------------------- 31 - ---------------------------- ---------------------------- </TABLE> <TABLE> <CAPTION> KEY DATES (TIMES) EVENTS LOCATION <S> <C> <C> <C> - - August 10th AUTOCAM BOARD OF DIRECTORS MEETING - - August 15th AUTOCAM 4TH QUARTER / ANNUAL RESULTS RELEASED - - August 27th FINAL OFFER/MERGER AGREEMENT DUE FOR INTERESTED PARTIES - - September 2nd SPECIAL COMMITTEE CONFERENCE CALL (11:00 am) Dial in # from WN&J - - September 3rd PRESENTATION MATERIALS RECEIVED BY THE SPECIAL COMMITTEE (Fairness Opinion) - - September 7th FORMAL PRESENTATION TO THE SPECIAL COMMITTEE (3:30 pm) WARNER NORCROSS - - September 8th SPECIAL COMMITTEE RATIFICATION MEETING (8:30 am) WARNER NORCROSS - - Represents Meeting Dates </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. PAGE 15 of 15 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 108 HH - MARKETING PHASE Management Presentation Meetings <PAGE> 109 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PROCESS TIMETABLE - PHASE III DRAFT #6, 09/01/99-3:20 PM - -------------------------------------------------------------------------------- PRELIMINARY SCHEDULE <TABLE> <CAPTION> <S><C> JULY 1999 AUGUST 1999 SEPTEMBER 1999 OCTOBER 1999 - --------------------------- ---------------------------- ---------------------------- ---------------------------- S M T W Th F S S M T W Th F S S M T W Th F S S M T W Th F S - --------------------------- ---------------------------- ---------------------------- ---------------------------- 1 2 3 1 2 3 4 1 2 - --------------------------- ---------------------------- ---------------------------- ---------------------------- 4 5 6 7 8 9 10 1 2 3 4 5 6 7 5 6 7 8 9 10 11 3 4 5 6 7 8 9 - --------------------------- ---------------------------- ---------------------------- ---------------------------- 11 12 13 14 15 16 17 8 9 10 11 12 13 14 12 13 14 15 16 17 18 10 11 12 13 14 15 16 - --------------------------- ---------------------------- ---------------------------- ---------------------------- 18 19 20 21 22 23 24 15 16 17 18 19 20 21 19 20 21 22 23 24 25 17 18 19 20 21 22 23 - --------------------------- ---------------------------- ---------------------------- ---------------------------- 25 26 27 28 29 30 31 22 23 24 25 26 27 28 26 27 28 29 30 24 25 26 27 28 29 30 - --------------------------- ---------------------------- ---------------------------- ---------------------------- 29 30 31 31 - --------------------------- ---------------------------- ---------------------------- ---------------------------- <CAPTION> <S><C> NOVEMBER 1999 - ---------------------------- S M T W Th F S - ---------------------------- 1 2 3 4 5 6 - ---------------------------- 7 8 9 10 11 12 13 - ---------------------------- 14 15 16 17 18 19 20 - ---------------------------- 21 22 23 24 25 26 27 - ---------------------------- 28 29 30 - ---------------------------- - ---------------------------- </TABLE> <TABLE> <CAPTION> KEY DATES (TIMES) EVENTS LOCATION - ------------------- ------ -------- <S> <C> <C> - - August 2nd MANAGEMENT PRESENTATION DRY RUN @ 5:00PM (Hilton Airport) THORNAPPLE RM - - August 3rd AMERICAN INDUSTRIAL PARTNERS - Management Presentation / Facility Tour THORNAPPLE RM - - August 4th & 5th AMERICAN INDUSTRIAL PARTNERS - Data Room DICKINSON WRIGHT - - August 6th AURORA CAPITAL PARTNERS - Management Presentation / Facility Tour THORNAPPLE RM - - August 16th AURORA CAPITAL PARTNERS - Data Room DICKINSON WRIGHT - - August 9th WIND POINT PARTNERS - Management Presentation / Facility Tour KENTWOOD RM - - August 10th,11th & 23rd WIND POINT PARTNERS - Data Room Visitation DICKINSON WRIGHT - - August 11th CARRERAS, KESTNER & CO., LLC - Management Presentation / Facility Tour KENTWOOD RM - - August 12th & 13th CARRERAS, KESTNER & CO., LLC - Data Room Visitation DICKINSON WRIGHT - - August 26th LATONA ASSOCIATES - Management Presentation / Facility Tour KENTWOOD RM - - August 25th LATONA ASSOCIATES - Data Room DICKINSON WRIGHT - - Friday August 27rd DEADLINE FOR RECEIPT OF FINAL PROPOSALS AND COMMENTS TO THE PURCHASE AGREEMENT </TABLE> - -- Represents Management Presentation Dates - -------------------------------------------------------------------------------- RONEY & CO. TIMETABLE INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 110 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- <TABLE> <CAPTION> COMPANY NAME PARTICIPANTS (TO BE UPDATED PERIODICALLY) ------------ ----------------------------------------- <S> <C> <C> - AMERICAN INDUSTRIAL PARTNERS AL BERRY - MANAGING DIRECTOR (AIP) MIKE BOYER - CFO (STANADYNE) (AUGUST 3RD - MANAGEMENT MTG.) STEVE TARINO - ASSOCIATE (AIP) BILL GURLEY - CEO (STANADYNE) BILL KELLY - SENIOR VP - PUMP DIVISION (STANADYNE) (AUGUST 3RD - AFTERNOON DATA ROOM) JOE PAGININI - GENERAL MANAGER (STANADYNE) (AUGUST 4TH & 5TH - DATA ROOM) AUDITORS - DELOITTE & TOUCHE (DATA ROOM ONLY) - AURORA CAPITAL PARTNERS RICHARD CROWELL - PRESIDENT (AUGUST 6TH - MANAGEMENT MTG.) JOHN MAPES - PRINCIPAL (AUGUST 6TH - AFTERNOON DATA ROOM) STEVE COLDER - ANALYST (ONLY 3 OF THE 4 CHASE PEOPLE WILL ATTEND) (AUGUST 16TH - DATA ROOM) (AUGUST 25TH - D&T WORKPAPERS MTG.) MARIE DUPREY - BANKBOSTON MARK LONDON - CHASE MANHATTAN GREG CLARK - BANKBOSTON GERRY MURRAY - CHASE MANHATTAN CHRIS CARMOSINO - BANKBOSTON CHARLIE SMITH - CHASE MANHATTAN GERMANTE BONCALDO - CHASE MANHATTAN - WIND POINT PARTNERS BOB CUMMINGS - MANAGING DIRECTOR JOHN CANNON - FIRST UNION (AUGUST 9TH - MANAGEMENT MTG.) JIM FORREST - MANAGING DIRECTOR DOUG FINK - FIRST UNION (AUGUST 9TH - AFTERNOON DATA ROOM) MIKE MAHONEY - CFO GLEN EDWARDS - FIRST UNION (AUGUST 10TH/11TH - DATA ROOM) TODD WILSON - VICE PRESIDENT (AUGUST 26TH - D&T WORKPAPERS MTG.) DAVE ZIMMER - CONSULTANT - CARRERAS, KESTNER & CO., LLC MICHAEL KESTNER - PRESIDENT LEO LEITNER - FIRST UNION (AUGUST 11TH - MANAGEMENT MTG.) RON CAMPBELL - TREASURER KEVIN ROCHE - FIRST UNION (AUGUST 11TH - ANDERSON TO D&T @ 1:00) IAN HESSEL - HILITE - CONTROLLER HENRY BIEDRZYCKI (HANK) - FIRST UNION (AUGUST 12TH/13TH - DATA ROOM) DONALD MAHER - HILITE - VP SALES MICHAEL GYURE - ARTHUR ANDERSON NO DATA ROOM - AUGUST 11TH JOHN J. BRADEN (JAY) - FIRST UNION GUY FAVE - ARTHUR ANDERSON - LATONA ASSOCIATES MATT FRIEL - VICE PRESIDENT MARK MUELLER*- CORP. CONTROLLER GENTEK (August 26th - Management Mtg.) SHIRAZ LADIWALA - ASSOCIATE RALPH PASSINO* - VP OF MFR. GENTEK (AUGUST 25TH - DATA ROOM) DAVE CUPPETT - DIRECTOR, GENTEK LEGAL - DEBEVOISE & PLIMPTON PAUL KESSLER* - PRESIDENT, TOLEDO TECHNOLOGIES * WILL ATTEND PLANT VISITS </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. TIMETABLE INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 111 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PROCESS TIMETABLE - SPECIAL COMMITTEE DRAFT #6, 09/01/99-3:20 PM - -------------------------------------------------------------------------------- PRELIMINARY SCHEDULE <TABLE> <CAPTION> <S><C> JULY 1999 AUGUST 1999 SEPTEMBER 1999 OCTOBER 1999 - --------------------------- ---------------------------- ---------------------------- ---------------------------- S M T W Th F S S M T W Th F S S M T W Th F S S M T W Th F S - --------------------------- ---------------------------- ---------------------------- ---------------------------- 1 2 3 1 2 3 4 1 2 - --------------------------- ---------------------------- ---------------------------- ---------------------------- 4 5 6 7 8 9 10 1 2 3 4 5 6 7 5 6 7 8 9 10 11 3 4 5 6 7 8 9 - --------------------------- ---------------------------- ---------------------------- ---------------------------- 11 12 13 14 15 16 17 8 9 10 11 12 13 14 12 13 14 15 16 17 18 10 11 12 13 14 15 16 - --------------------------- ---------------------------- ---------------------------- ---------------------------- 18 19 20 21 22 23 24 15 16 17 18 19 20 21 19 20 21 22 23 24 25 17 18 19 20 21 22 23 - --------------------------- ---------------------------- ---------------------------- ---------------------------- 25 26 27 28 29 30 31 22 23 24 25 26 27 28 26 27 28 29 30 24 25 26 27 28 29 30 - --------------------------- ---------------------------- ---------------------------- ---------------------------- 29 30 31 31 - --------------------------- ---------------------------- ---------------------------- ---------------------------- <CAPTION> <S><C> NOVEMBER 1999 - ---------------------------- S M T W Th F S - ---------------------------- 1 2 3 4 5 6 - ---------------------------- 7 8 9 10 11 12 13 - ---------------------------- 14 15 16 17 18 19 20 - ---------------------------- 21 22 23 24 25 26 27 - ---------------------------- 28 29 30 - ---------------------------- - ---------------------------- </TABLE> <TABLE> <CAPTION> KEY DATES (TIMES) EVENTS LOCATION - ------------------- ------ -------- <S> <C> <C> - - August 10th AUTOCAM BOARD OF DIRECTORS MEETING - - August 15th AUTOCAM 4TH QUARTER / ANNUAL RESULTS RELEASED - - August 27th FINAL OFFER/MERGER AGREEMENT DUE FOR INTERESTED PARTIES - - September 2nd SPECIAL COMMITTEE CONFERENCE CALL (11:00 am) Dial in # from WN&J - - September 3rd PRESENTATION MATERIALS RECEIVED BY THE SPECIAL COMMITTEE (Fairness Opinion) - - September 7th FORMAL PRESENTATION TO THE SPECIAL COMMITTEE (3:30 pm) WARNER NORCROSS - - September 8th SPECIAL COMMITTEE RATIFICATION MEETING (8:30 am) WARNER NORCROSS </TABLE> - -- Represents Meeting Dates - -------------------------------------------------------------------------------- RONEY & CO. TIMETABLE INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 112 III -- MARKETING PHASE Bidding Procedures Letter <PAGE> 113 [RONEY & CO. LETTERHEAD] PRIVATE & CONFIDENTIAL August 9th, 1999 Salutation ContactFirstName ContactLastName Title Company_Name Address Address1 City , StateorProvince PostalCode Dear Salutation ContactLastName : On behalf of Autocam Corporation and its affiliates and subsidiaries (collectively, "Autocam" or the "Company") and its Board of Directors (the "Board"), we appreciate your continued interest in a transaction ("Transaction") involving Autocam. This letter sets forth the procedures and timing with respect to the submission of a final and definitive, binding offer (the "Final Proposal") to acquire Autocam. In order to permit you to finalize your Final Proposal, we have also enclosed a form of Agreement and Plan of Merger (the "Agreement"). As described below, in connection with the submission of the Final Proposal, you will be asked to submit a mark-up of the Agreement clearly indicating any proposed changes. The Agreement is structured to result in a sale of stock of Autocam Corporation through a tender offer. While we recognize that the Agreement is subject to change based upon the structure of the final transaction, the extent and nature of any changes made by a prospective purchaser to the form of Agreement will be taken into consideration in evaluating the Final Proposals. We request that your Final Proposal for the Company be submitted in conformity with the following guidelines: 1. The Final Proposal should be submitted in writing to the Company in care of: James C. Penman Managing Director Roney & Co. One Griswold Detroit, MI 48226 Tel: (313) 225-5746 Fax: (313) 963-2303 2. The Final Proposal must be received no later than 5:00 p.m., Eastern Daylight Time, on Friday, August 27, 1999. 3. The Final Proposal should specify the cash purchase price in U.S. dollars to be paid, on a per share basis, to the shareholders for 100% of the outstanding shares and options of Autocam. The Company has a stated preference for cash offers for the purchase of the Company and will discount accordingly any non-cash consideration included in your Final Proposal. <PAGE> 114 Salutation ContactFirstName ContactLastName August 9th, 1999 Page 2 - -------------------------------------------------------------------------------- 4. The Company's unaudited combined balance sheets and statements of operations, and unaudited proforma combined balance sheets and statements of operations, for the three and twelve months ended June 30, 1999 are included with this letter. Your Final Proposal should be based on the June 30, 1999 balance sheet information contained in Annex A attached hereto. The Final Proposal should specify both the Equity Value (as defined below) to be paid to the Company's shareholders, and the corresponding Enterprise Value (as defined below), based on the Company's balance sheets as of June 30, 1999. For these purposes, Equity Value shall be defined to mean the total cash purchase price to be paid to the Company's shareholders and Enterprise Value shall be defined to mean the Equity Value, plus the Company's Total Debt, less the Company's Assets Held for Sale and less Proceeds from Options Outstanding as of June 30, 1999, each as reflected on Annex A. 5. The Agreement, marked to represent a form that in substance you are ready to execute, should be submitted with your Final Proposal. The Final Proposal must state that you are prepared to execute the Agreement in substance as submitted. PLEASE DO NOT RETYPE THE AGREEMENT. Please mark your changes on the Agreement itself. Your willingness to accept the substance of the Agreement without significant modifications will be an important factor in the evaluation of Final Proposals. 6. Questions or clarifications regarding specific legal terms of the Agreement should occur prior to submission of your Final Proposal. The Company encourages each prospective purchaser's counsel to discuss the Agreement with Autocam's counsel, Dickinson Wright PLLC prior to the foregoing deadline for Final Proposals. Requests for such a discussion and for additional copies of the Agreement should be directed to: STUART F. CHENEY, ESQ. Dickinson Wright PLLC 200 Ottawa Avenue, Suite 900 Grand Rapids, MI 49503-2423 Telephone: (616) 458-1300 Facsimile: (616) 458-6753 7. A description of your plans for financing the acquisition should be included in your Final Proposal. To the extent that you are relying on external financing, please provide us with copies of your executed commitment letters from financing sources as well as the names and telephone numbers of the lending institutions and equity participants involved so that we may contact them to discuss the details of such financing. The Agreement does not include a provision that makes the purchaser's obligation to close the transaction contingent upon obtaining financing, and the inclusion of any such contingency will place a prospective purchaser at a significant disadvantage. 8. The Agreement does not include a provision that makes the purchaser's obligation to close the transaction contingent upon completing further due diligence requirements. All prospective purchasers are expected to complete their due diligence investigation of the Company prior to submission of the Final Proposal. You should make known to Roney & Co. ("Roney" or the "Advisor") promptly any substantial remaining due diligence issues in order to resolve them before the submission of your Final Proposal. <PAGE> 115 Salutation ContactFirstName ContactLastName August 9th, 1999 Page 3 - -------------------------------------------------------------------------------- 9. All required corporate approvals, including authorization of your company's Board of Directors, should be obtained prior to submitting your Final Proposal, your Final Proposal should clearly indicate any significant conditions to be resolved prior to closing the transaction. 10. Final Proposals will be evaluated as soon as reasonably practicable with the objective of expeditiously entering into a definitive Agreement. In order to provide time for this evaluation, the Final Proposal must state that it, as well as the financing commitments, will remain in effect through at least 5:00 p.m., Eastern Daylight Time, on October 29, 1999 and that there are no conditions to your execution of the Agreement other than mutual agreement as to the terms thereof. 11. The Final Proposal should include the name and telephone number of a contact person who will be prepared to answer questions regarding the purchaser's Final Proposal. The Board intends to enter into a definitive Agreement with that party that submits the Final Proposal best satisfying the shareholder's objectives. In selecting a Final Proposal, Autocam, the Board and their advisors will consider a number of factors but will give significant weight to the following: (i) the purchase price; (ii) the extent and nature of any revisions to the Agreement; and (iii) the speed and certainty with which a transaction can be consummated. The Company reserves the right to deal with any party individually or simultaneously with other prospective purchasers. The Company also reserves the right, in its sole discretion, to modify the terms and conditions of the invitation made by this letter and the terms and conditions set forth in the Agreement at any time, and to reject any and all Final Proposals without providing any reasons therefor. The Company or the Advisor may discuss with any prospective purchaser, at any time, the terms of any Final Proposal submitted by such party, for the purpose of clarifying the terms of such Final Proposal in any respect. The Company and the Advisor shall not have any liability to any prospective purchaser as a result of the rejection of any Final Proposal or the acceptance of another Final Proposal or other transaction. A Final Proposal will be considered formally accepted only when a definitive Agreement has been executed and delivered by the Company. Until such time, the Company will not have any obligations to any prospective purchaser with respect to the sale of the Company and following such time the Company's only obligations will be those set forth in the definitive Agreement. Nothing in this letter shall be deemed to be a contract of any kind between the Company or any affiliate and any other party. The submission of any Final Proposal will constitute an agreement to be bound by the terms set forth therein. Any party submitting a Final Proposal shall bear its own costs and expenses of attorneys and advisor, including, without limitation, any brokers, finders or agents representing such party. Such costs and expenses shall not be the responsibility of the Company. The terms of this invitation, as well as the Agreement, which are also being provided to other interested parties, are subject to the Confidentiality Agreement relating to the proposed transaction which was previously executed and delivered by you to Roney. <PAGE> 116 Salutation ContactFirstName ContactLastName August 9th, 1999 Page 4 - -------------------------------------------------------------------------------- Roney will be available to discuss these procedures with you in order to provide guidance as to the form and content of your contemplated Final Proposal. Please direct all inquiries and communications to me at (313) 225-5746 or Kirk Haggarty at (313) 225-5748. Do not contact any employee of the Company except as specifically authorized by Roney. Once again, on behalf of Autocam and the Board of Directors, we appreciate your continued interest in the Company and look forward to receiving your Final Proposal. Very truly yours, ---------------------------- James C. Penman Managing Director <PAGE> 117 ANNEX A AUTOCAM CORPORATION AUGUST 9TH, 1999 FINAL PROPOSAL ASSUMPTION GUIDELINES - -------------------------------------------------------------------------------- <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------- BALANCE SHEET INFORMATION - PRELIMINARY DRAFT OF AUDITED STATEMENTS As of June 30, 1999 ($'S IN THOUSANDS) --------------------------------------------------------------------------------------------------- JUNE 30, 1999 ------------ <S> <C> ASSETS: Cash $ 3,969 Accounts receivable 40,781 Inventories 15,237 Other current assets 2,103 ------------ TOTAL CURRENT ASSETS $ 62,090 Deposits on equipment 2,848 Fixed assets, net 130,926 Goodwill and other intangibles 28,376 Other assets 6,214 ------------ TOTAL ASSETS $ 230,454 LIABILITIES: Current maturities of long term debt $4,478 Accounts payable 22,696 Accrued liabilities 13,665 ------------ TOTAL CURRENT LIABILITIES $ 40,839 Long-term obligations, net 108,960 Deferred taxes 25,628 Deferred credits and other 5,416 Minority interest 2,813 Shareholders' equity 46,798 ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 230,454 --------------------------------------------------------------------------------------------------- </TABLE> FOR ILLUSTRATIVE PURPOSES ONLY <TABLE> <CAPTION> ------------------------------------------------ --------------------------------------------- ENTERPRISE VALUE CALCULATION ($000's) Equity Value Calculation ($000's) ------------------------------------------------ --------------------------------------------- <S> <C> <C> <C> EQUITY PURCHASE PRICE $203,640 Enterprise Value $ 300,000 Plus: Net Debt 113,438 Less: Net Debt (113,438) Less: Assets (C) (10,000) Plus: Assets (C) 10,000 Option Proceeds ( 7,078) Option Proceeds 7,078 -------- ----- Enterprise Value $300,000 EQUITY PURCHASE PRICE $ 203,640 </TABLE> <TABLE> <S> <C> TOTAL SHARES & OPTIONS OUTSTANDING (A)/(B) 7,011 IMPUTED PRICE PER SHARE $29.05 ------ EQUITY PURCHASE PRICE $203,640 ----------------------------------------------------------------------------------------------------- </TABLE> ADDITIONAL FACTS: (A) Total Autocam shares outstanding (pre-options) as of 6/30/99 - 6,306,993 (B) Total Autocam options outstanding as of 6/30/99 - 703,551 (average exercise price of $10.06) (C) Assets for sale or redeployment approximate $10mm <PAGE> 118 IIJ - MARKETING PHASE SUMMARY OF FINAL OFFER LETTERS <PAGE> 119 IIK - MARKETING PHASE MERGER AGREEMENT DATED _________, 1999 <PAGE> 120 IIIA -- TRANSACTION PHASE AUTOCAM CORPORATION <PAGE> 121 - -------------------------------------------------------------------------------- AUTOCAM CORPORATION BOARD OF DIRECTORS MEETING SEPTEMBER 7, 1999 TABLE OF CONTENTS - -------------------------------------------------------------------------------- III. TRANSACTION PHASE A. Autocam Corporation 1. Stock Price/Volume Analysis 2. Discounted Cashflow Analysis 3. Comparable Company Analysis 4. Comparable Transactions Analysis 5. Premium Analysis B. Purchase Information C. Roney & Co. Fairness Opinion Letter D. Roney & Co. Fairness Narrative E. Transaction Timeline - -------------------------------------------------------------------------------- RONEY & CO. PAGE 1 OF 1 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 122 IIIA - AUTOCAM CORPORATION I - Stock Price/Volume Analysis <PAGE> 123 - -------------------------------------------------------------------------------- AUTOCAM CORPORATION BOARD OF DIRECTORS MEETING SEPTEMBER 7, 1999 TABLE OF CONTENTS - -------------------------------------------------------------------------------- STOCK PRICE/VOLUME ANALYSIS -- AUTOCAM CORPORATION - - Term Sheet Agreement Date (__________) -- Stock Price $ _______ - - Last 10 Days -- Average Price $13.53 - - Last 30 Days -- Average Price $13.72 - - Last 90 Days -- Average Price $12.62 - - Last 180 Days -- Average Price $11.21 - - Comparison of ACAM Stock Price and Dow Jones Industrial Average since IPO - - Comparison of ACAM Volume and Dow Jones Industrial Average Volume for Last 90 Days - -------------------------------------------------------------------------------- RONEY & CO. Page 1 of 1 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 124 AUTOCAM CORPORATION STOCK PRICE/VOLUME ANALYSIS LAST 10 DAYS AS OF SEPTEMBER 1, 1999. AVERAGE PRICE - $13.14 [LINE GRAPH] Stock Price Volume 8/19/99 $ 12.63 700 8/20/99 13.06 6,500 8/23/99 13.50 5,200 8/24/99 13.25 3,400 8/25/99 13.25 2,800 8/26/99 13.25 5,200 8/27/99 13.13 1,800 8/30/99 13.13 6,600 8/31/99 13.19 5,800 9/1/99 13.00 6,100 <PAGE> 125 AUTOCAM CORPORATION STOCK PRICE/VOLUME ANALYSIS LAST 30 DAYS AS OF SEPTEMBER 1, 1999. AVERAGE PRICE - $13.35 [LINE GRAPH] Date Stock Price Volume - ---- ----------- ------ 7/22/99 $ 13.875 4,000 7/30/99 $ 13.38 3,500 8/6/99 $ 12.88 1,600 8/13/99 $ 13.25 3,400 8/20/99 $ 13.06 6/100 8/27/99 $ 13.12 1,800 9/1/99 $ 13.00 6/100 <PAGE> 126 AUTOCAM CORPORATION STOCK PRICE/VOLUME ANALYSIS LAST 90 DAYS AS OF SEPTEMBER 1, 1999. AVERAGE PRICE - $12.36 [LINE GRAPH] Date Stock Price Volume ---- ----------- ------ Phase I Sent 6/1/99 $ 11.72 9300 Phase II Sent 6/8/99 $ 11.25 200 Phase III Sent 6/29/99 $ 11.94 4400 <PAGE> 127 AUTOCAM CORPORATION STOCK PRICE/VOLUME ANALYSIS LAST 180 DAYS AS OF SEPTEMBER 1, 1999. AVERAGE PRICE - $12.12 [LINE GRAPH] Date Stock Price Volume ---- ----------- ------ Phase I Sent 6/1/99 $ 11.72 9300 Phase II Sent 6/8/99 $ 11.25 200 Phase II Sent 6/29/99 $ 11.94 4400 <PAGE> 128 AUTOCAM CORPORATION STOCK PRICE-DOW JONES INDUSTRIAL AVERAGE COMPARISON SINCE IPO DATE-10/30/91 AVERAGE PRICE - $10.91 [LINE GRAPH] <PAGE> 129 Dow Jones Industrial Average Daily Volume vs. ACAM Daily Volume Last 90 days as of September 1, 1999 [LINE GRAPH] Date ACAM Daily Volume DJII Daily Volume Phase I Sent 6/1/99 6,838,000 9300 Phase II Sent 6/8/99 6,859,000 200 Phase III Sent 6/29/99 8,201,000 4400 <PAGE> 130 IIIA -- AUTOCAM CORPORATION 2 - Discounted Cashflow Analysis <PAGE> 131 - -------------------------------------------------------------------------------- PROJECT TITAN DISCOUNTED CASH FLOW ANALYSIS - -------------------------------------------------------------------------------- PRESENT VALUE OF DISCOUNTED CASH FLOWS ("DCF") This approach argues that a potential investor will pay a price for a security yields a targed minimum rate of return on invested capital (both to suppliers of debt and equity). Using this targeted rate of return as a discount factor, the present value of an estimated future earnings stream for a given number of years can be computed by discounting each year's estimated earnings to the present time. Other factors considered include the expected cyclicality or unpredictability (if any) of a company's earnings and cash flow and the investors' willingness to wait out a given length of ownership. To state the premise another way, DCF valuation posits that the buyer purchases a time series of free cash flows that are generated by the assets purchased. DCF does not value the total cash flow of the business. Rather, it values only the free cash flow. In doing so, this analysis seperates and ascribes a value to only the cash flows that an investor can remove from the business. Cash that is generated but used to sustain the business (such as increases in working capital and capital expenditures) is not included in the DCF value. Cash flow that must be retained in the business creates no incremental value to the buyer. Before defining free cash flow, another methodological nuance should be noted. As noted, DCF valuation uses a discount rate that reflects the firms weighted cost of capital or the price it must pay to suppliers or both debt and equity. Accordingly, discounted free cash flow is independent of financing costs. For Autocam Corporation, we have considered managements' projected financial statements to estimate Free Cash Flow. TERMINAL VALUE DCF valuation is composed of two values; a forecast of free cash flows for some term of years and a terminal value that is a surrogate for the present value of the DCF's that are expected to occur in the years after the end of the forecast period. Terminal value at the end of the period of cash flow forecasts may be arrived at in different ways, such as estimating book value, applying a price/earnings multiple to forecasted earnings or employing a cash flow multiple. We feel using a cash flow multiple is most consistent with DCF methodology. In essence, this technique multiplies the operating income in the last year of the forecast by a multiplier that attempts to estimate the value of cash flows in perpetuity. COST OF CAPITAL (DISCOUNT RATE) Once the free cash flows and terminal values are estimated, the present value of these components is calculated. The acquirer is paying today for access to the cash flows generated by the assets in the future; therefore, these cash flows must be discounted to the present. The proper discount rate can be estimated by calculating the marginal weighted average cost of capital. In essence, the discount rate attempts to approximate the rate of return the suppliers of capital will expect to earn. In Autocam's instance, because of its asset structure, working capital liquidity needs and capitalization requirements, a purchaser would not be able to borrow all of the acquisition funds on a senior basis. Thus, a component of the capital structure could, by necessity, consist of equity related subordinated debt, commonly referred to "mezzanine capital", along with a substantial amount of equity. - -------------------------------------------------------------------------------- RONEY & CO. INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 132 - -------------------------------------------------------------------------------- PROJECT TITAN DISCOUNTED CASH FLOW ANALYSIS - -------------------------------------------------------------------------------- DCF VALUATION SUMMARY The following represents a summary of the shareholder value results of the discounted cash flow analysis presented hereinafter assuming a range of discount rates and a range of terminal value multiples. - -------------------------------------------------------------------------------- <TABLE> <CAPTION> Terminal EBITA Multiple Discount Rate 5.5x 6.0x 6.5x --------------- --------------- --------------- <S> <C> <C> <C> <C> <C> <C> 11.00% $163,101 $23.3 $178,887 $25.5 $194,673 $27.8 12.00% $152,812 $21.8 $167,906 $24.0 $183,000 $26.1 13.00% $143,032 $20.4 $157,470 $22.5 $171,908 $24.5 14.00% $133,731 $19.1 $147,547 $21.0 $161,362 $23.0 15.00% $124,881 $17.8 $138,106 $19.7 $151,331 $21.6 </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 133 - -------------------------------------------------------------------------------- DISCOUNTED CASH FLOW ANALYSIS - -------------------------------------------------------------------------------- <PAGE> 134 RONEY & CO. 09/02/99 10:30 AM PROJECT TITAN - -------------------------------------------------------------------------------- ------------------------------------------------------------------- TABLE OF CONTENTS ------------------------------------------------------------------- Page 1 Executive Summary 2 Income Statement 3 Balance Sheet 4 Cash Flow Statement 5 Stand Alone Discounted Cash Flow Analysis 6 Multiple Analysis ------------------------------------------------------------------- Confidential Roney & Co. <PAGE> 135 PROJECT TITAN 1 EXECUTIVE SUMMARY 12/15/99 2:02 AM CONFIDENTIAL <TABLE> <CAPTION> ------------------------------------------------------------------------------------ HISTORICAL PROJECTED ------------------------------------------------------------------------------------ 06/30/97 06/30/98 06/30/99 06/30/00 06/30/01 06/30/02 ------------------------------------------------------------------------------------ INCOME STATEMENT ASSUMPTIONS - ---------------------------- <S> <C> <C> <C> <C> <C> <C> <C> Sales Growth N/A 45.8% 98.9% 13.3% 19.7% 12.0% COGS Margin 69.8% 68.5% 76.4% 70.7% 70.0% 69.7% Gross Profit Margin 30.2% 31.5% 23.6% 29.3% 30.0% 30.3% SG&A Margin 5.9% 6.6% 5.5% 5.3% 5.4% 5.0% EBIT MARGIN 15.5% 16.4% 10.4% 15.6% 16.7% 17.2% EBITDA MARGIN 24.4% 24.9% 18.2% 24.0% 24.6% 25.2% EBITDA Growth N/A 48.9% 45.2% 49.5% 22.9% 14.9% Net Income 5,411 7,741 6,270 20,607 26,416 30,592 Net Income Margin 8.7% 8.6% 3.5% 10.1% 10.8% 11.2% Net Income Growth N/A 43.1% -19.0% 228.7% 28.2% 15.8% CAPITAL EXPENDITURE ASSUMPTIONS - ------------------------------- Total Capital Expenditures $10,205 $17,484 $25,862 $22,000 $16,500 $16,500 Total Depreciation Expense $5,521 $7,654 $12,877 $15,918 $18,371 $20,895 BALANCE SHEET ASSUMPTIONS - ------------------------- Accounts Receivable (Days of Sales) 52.1 47.2 82.8 82.8 82.8 82.8 Inventories (Days of COGS) 46.0 37.7 40.5 40.5 40.5 40.5 Prepaid Expenses (% of Sales) 1.2% 1.2% 1.2% 1.2% 1.2% 1.2% Accounts Payable (Days COGS) 37.1 46.2 58.9 58.9 58.9 58.9 Accrued Expenses (Days COGS) 24.6 19.4 35.3 35.3 35.3 35.3 STAND-ALONE DISCOUNTED CASH FLOW PER SHARE - -------------------------------- --------- Stand-Alone Enterprise Value $260,776 $37.2 Shareholder Value $157,470 $22.5 Fully Diluted Shares Outstanding 7,011 Multiple of EBIT 13.9x 8.2x Multiple of EBITDA 8.0x 5.3x Multiple of Sales 1.5x 1.3x <CAPTION> CONFIDENTIAL - ------------ ------------------------- ------------------------- 06/30/03 06/30/04 ------------------------- INCOME STATEMENT ASSUMPTIONS - ---------------------------- <S> <C> <C> Sales Growth 5.5% 0.5% COGS Margin 69.7% 69.7% Gross Profit Margin 30.3% 30.3% SG&A Margin 5.0% 5.0% EBIT MARGIN 18.0% 18.0% EBITDA MARGIN 25.3% 25.3% EBITDA Growth 5.6% 0.5% Net Income 33,698 33,952 Net Income Margin 11.7% 11.7% Net Income Growth 10.2% 0.8% CAPITAL EXPENDITURE ASSUMPTIONS - ------------------------------- Total Capital Expenditures $20,000 $20,000 Total Depreciation Expense $20,000 $20,000 BALANCE SHEET ASSUMPTIONS - ------------------------- Accounts Receivable (Days of Sales) 82.8 82.8 Inventories (Days of COGS) 40.5 40.5 Prepaid Expenses (% of Sales) 1.2% 1.2% Accounts Payable (Days COGS) 58.9 58.9 Accrued Expenses (Days COGS) 35.3 35.3 STAND-ALONE DISCOUNTED CASH FLOW - -------------------------------- Stand-Alone Enterprise Value Shareholder Value Fully Diluted Shares Outstanding Multiple of EBIT Multiple of EBITDA Multiple of Sales </TABLE> Confidential Roney & Co. <PAGE> 136 PROJECT TITAN 2 INCOME STATEMENT 12/15/99 CONFIDENTIAL 2:02 AM <TABLE> <CAPTION> ------------------------------------------------------------------------------------ HISTORICAL(1) PROJECTED(2) ------------------------------------------------------------------------------------ 06/30/97 06/30/98 06/30/99 06/30/00 06/30/01 06/30/02 ------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> <C> Net Sales $61,986 $90,361 $179,726 $203,577 $243,728 $273,013 Cost of Goods Sold (Excluding D&A) $43,239 $61,925 $137,229 $143,887 $170,519 $190,376 ------------------------------------------------------------------------------------ Gross Profit $18,747 $28,436 $ 42,497 $ 59,690 $ 73,210 $ 82,638 SG&A Expense (Excluding D&A) $ 3,642 $ 5,943 $ 9,838 $ 10,874 $ 13,231 $ 13,711 Corporate Overhead $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 ------------------------------------------------------------------------------------ EBITDA $15,105 $22,493 $ 32,659 $ 48,816 $ 59,979 $ 68,927 Depreciation Expense $ 5,521 $ 7,654 $ 12,877 $ 15,918 $ 18,371 $ 20,895 Amortization of Existing Intangibles $ 0 $ 0 $ 1,006 $ 1,195 $ 968 $ 968 ------------------------------------------------------------------------------------ Total Depreciation & Amortization $ 5,521 $ 7,654 $ 13,883 $ 17,113 $ 19,338 $ 21,863 EBIT $ 9,583 $14,839 $ 18,775 $ 31,703 $ 40,640 $ 47,064 Existing Interest Expense $ 1,346 $ 2,719 $ 7,239 $ 0 $ 0 $ 0 Revolver Interest Expense $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Interest (Income) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Other (Income), Expense $ 0 $ 166 $ 1,510 $ 0 $ 0 $ 0 ------------------------------------------------------------------------------------ Pretax Income $ 8,238 $11,954 $ 10,026 $ 31,703 $ 40,640 $ 47,064 Income Taxes $ 2,827 $ 4,213 $ 3,757 $ 11,096 $ 14,224 $ 16,472 ------------------------------------------------------------------------------------ NET INCOME $ 5,411 $ 7,741 $ 6,270 $ 20,607 $ 26,416 $ 30,592 ==================================================================================== Extraordinary Items $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Preferred Dividends $ 0 $ 0 $ 0 Common Dividends $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 ------------------------------------------------------------------------------------ Change in Net Worth $ 5,411 $ 7,741 $ 6,270 $ 20,607 $ 26,416 $ 30,592 Shares Outstanding 5989.7 6040.1 6307.0 0.0 0.0 0.0 EPS $ 0.90 $ 1.28 $ 0.99 N/A N/A N/A <CAPTION> CONFIDENTIAL - ------------ ------------------------- ------------------------- 06/30/03 06/30/04 ------------------------- <S> <C> <C> Net Sales $288,041 $289,586 Cost of Goods Sold (Excluding D&A) $200,764 $201,841 ------------------------- Gross Profit $ 87,276 $ 87,744 SG&A Expense (Excluding D&A) $ 14,466 $ 14,543 Corporate Overhead $0 $0 ------------------------- EBITDA $ 72,811 $ 73,201 Depreciation Expense $ 20,000 $ 20,000 Amortization of Existing Intangibles $968 $ 968 ------------------------- Total Depreciation & Amortization $ 20,968 $ 20,968 EBIT $ 51,843 $ 52,233 Existing Interest Expense $0 $ 0 Revolver Interest Expense $0 $ 0 Interest (Income) $0 $ 0 Other (Income), Expense $0 $ 0 ------------------------- Pretax Income $ 51,843 $ 52,233 Income Taxes $ 18,145 $ 18,282 ------------------------- NET INCOME $ 33,698 $ 33,952 ========================= Extraordinary Items $ 0 $ 0 Preferred Dividends Common Dividends $ 0 $ 0 ------------------------- Change in Net Worth $ 33,698 $ 33,952 Shares Outstanding 0.0 0.0 EPS N/A N/A </TABLE> (1) Historical results are actual and do not include the pro forma results of certain acquisitions. (2) Projected results are not adjusted for certain consolidation expenses discussed in the Confidential Offering Memorandum and elsewhere. Confidential Roney & Co. <PAGE> 137 PROJECT TITAN 3 CONFIDENTIAL BALANCE SHEET 12/15/99 2:02 AM <TABLE> <CAPTION> ------------------------------------------------------------------------------------ HISTORICAL PROJECTED ------------------------------------------------------------------------------------ ASSETS 06/30/97 06/30/98 06/30/99 06/30/00 06/30/01 06/30/02 - ------ ------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> <C> Cash $ 2,511 $ 1,644 $ 3,654 $ 4,072 $ 4,875 $ 5,460 Excess Cash 0 0 0 0 0 0 Accounts Receivable 8,842 11,680 40,781 46,181 55,290 61,933 Inventories 5,444 6,389 15,237 15,966 18,921 21,124 Prepaid Expenses 722 1,089 2,103 2,443 2,925 3,276 Other Current Assets 0 0 0 0 0 0 ------------------------------------------------------------------------------------ Total Current Assets $17,518 $ 20,801 $ 61,775 $ 68,661 $ 82,010 $ 91,793 Gross Property, Plant, and Equipment $70,923 $ 88,606 $165,395 $187,395 $203,895 $220,395 Accumulated Depreciation 17,632 24,185 34,918 50,836 69,207 90,102 ------------------------------------------------------------------------------------ Net Property, Plant and Equipment $53,291 $ 64,421 $130,477 $136,559 $134,689 $130,294 Deferred Tax Asset $ 2,642 $ 4,411 $2,848 $ 2,848 $2,848 $ 2,848 Other Assets 3,742 9,450 6,214 6,214 6,214 6,214 Existing Intangibles 6,443 14,366 28,376 27,181 26,213 25,245 ------------------------------------------------------------------------------------ TOTAL ASSETS $83,638 $113,449 $229,690 $241,463 $251,972 $256,393 ==================================================================================== LIABILITIES & SHAREHOLDER EQUITY - -------------------------------- Accounts Payable $ 4,398 $ 7,831 $22,130 $ 23,219 $ 27,517 $ 30,721 Accrued Expenses 2,912 3,291 13,262 13,916 16,491 18,412 Current Portion of Long-Term Debt 5,906 6,554 4,478 0 0 0 Other Current Liabilities 0 0 0 0 0 0 ------------------------------------------------------------------------------------ Total Current Liabilities $13,216 $ 17,675 $ 39,870 $ 37,135 $ 44,008 $ 49,133 Existing Long-Term Debt $25,192 $ 37,851 $109,560 $0 $0 $0 Revolver 0 0 0 108,983 86,309 55,119 Deferred Tax Liability 7,802 10,051 25,628 25,523 25,418 25,312 Other Long-Term Liabilities 814 561 5,417 0 0 0 ------------------------------------------------------------------------------------ Total Liabilities $47,023 $ 66,139 $180,474 $171,641 $155,734 $129,564 Minority Interest $ 0 $ 2,250 $ 2,814 $ 2,814 $ 2,814 $ 2,814 Common Stock $26,271 $ 31,840 $ 34,572 $ 46,402 $ 46,402 $ 46,402 Additional Paid in Capital 0 0 0 0 0 0 Other (646) (525) (3,642) 0 0 0 Retained Earnings 10,990 13,746 15,472 20,607 47,023 77,614 ------------------------------------------------------------------------------------ Total Shareholder Equity $36,615 $ 45,061 $ 46,402 $67,008 $ 93,425 $124,016 TOTAL LIABILITIES & SHAREHOLDER EQUITY $83,638 $113,449 $229,690 $241,463 $251,972 $256,393 ==================================================================================== Balance Test $ 0 $0 $0 $0 $0 $0 <CAPTION> CONFIDENTIAL - ------------ ------------------------- ------------------------- ASSETS 06/30/03 06/30/04 - ------ ------------------------- <S> <C> <C> Cash $ 5,761 $ 5,792 Excess Cash 0 11,653 Accounts Receivable 65,342 65,692 Inventories 22,277 22,396 Prepaid Expenses 3,456 3,475 Other Current Assets 0 0 ------------------------ Total Current Assets $ 96,836 $109,009 Gross Property, Plant, and Equipment $240,395 $260,395 Accumulated Depreciation 110,102 130,102 ------------------------ Net Property, Plant and Equipment $130,294 $130,294 Deferred Tax Asset $2,848 $ 2,848 Other Assets 6,214 6,214 Existing Intangibles 24,277 23,309 ------------------------ TOTAL ASSETS $260,468 $271,673 ======================== LIABILITIES & SHAREHOLDER EQUITY - -------------------------------- Accounts Payable $ 32,397 $32,571 Accrued Expenses 19,416 19,521 Current Portion of Long-Term Debt 0 0 Other Current Liabilities 0 0 ------------------------ Total Current Liabilities $ 51,814 $52,092 Existing Long-Term Debt $0 $0 Revolver 22,919 0 Deferred Tax Liability 25,207 25,102 Other Long-Term Liabilities 0 0 ------------------------ Total Liabilities $ 99,940 $ 77,194 Minority Interest $2,814 $ 2,814 Common Stock $ 46,402 $ 46,402 Additional Paid in Capital 0 0 Other 0 0 Retained Earnings 111,312 145,264 ------------------------ Total Shareholder Equity $157,714 $191,666 TOTAL LIABILITIES & SHAREHOLDER EQUITY $260,468 $271,673 ======================== Balance Test $0 $0 </TABLE> Confidential Roney & Co. <PAGE> 138 PROJECT TITAN 4 CONFIDENTIAL CASH FLOW STATEMENT 12/15/99 - ------------ 2:02 AM <TABLE> <CAPTION> --------------------------------------------------------------------- PROJECTED --------------------------------------------------------------------- 06/30/00 06/30/01 06/30/02 06/30/03 06/30/04 --------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> Net Income $20,607 $26,416 $30,592 $33,698 $33,952 Plus: Depreciation 15,918 18,371 20,895 20,000 20,000 Amortization of Existing Intangibles 1,195 968 968 968 968 Net Deferred Tax Increase, (Decrease) (105) (105) (105) (105) (105) --------------------------------------------------------------------- Total Cash Provided by Operations $37,615 $45,650 $52,349 $54,561 $54,814 Less: Required Cash (Increase), Decrease ($418) ($803) ($586) ($301) ($31) Accounts Receivable - Trade (Increase), Decrease (5,401) (9,108) (6,643) (3,409) (350) Inventories (Increase), Decrease (729) (2,955) (2,203) (1,153) (119) Prepaid Expenses (Increase), Decrease (340) (482) (351) (180) (19) Other Current Assets (Increase), Decrease 0 0 0 0 0 Plus: Accounts Payable Increase, (Decrease) 1,089 4,297 3,204 1,676 174 Accrued Expenses Increase, (Decrease) 654 2,576 1,920 1,005 104 Other Current Liabilities Increase, (Decrease) 0 0 0 0 0 --------------------------------------------------------------------- Total Working Capital Sources, (Uses) ($5,144) ($6,475) ($4,659) ($2,361) ($241) NET CASH PROVIDED BY (USED IN) OPERATIONS $32,471 $39,174 $47,690 $52,199 $54,573 Less: Total Capital Expenditures ($22,000) ($16,500) ($16,500) ($20,000) ($20,000) Other Assets (Increase), Decrease 0 0 0 0 0 --------------------------------------------------------------------- NET CASH PROVIDED BY (USED IN) INVESTING ($22,000) ($16,500) ($16,500) ($20,000) ($20,000) Minority Interest $0 $0 $0 $0 $0 Extraordinary Items 0 0 0 0 0 Common Dividends 0 0 0 0 0 --------------------------------------------------------------------- NET CASH PROVIDED BY (USED IN) FINANCING $0 $0 $0 $0 $0 NET CASH FLOW $10,471 $22,674 $31,190 $32,199 $34,573 Excess Cash Swept to Reduce Revolver (10,471) (22,674) (31,190) (32,199) (34,573) Additions to, (Repayment) of Revolver (10,471) 0 0 0 0 Increase (Decrease) in Excess Cash Balance 0 22,674 31,190 32,199 34,573 Ending Excess Cash Balance 0 0 0 0 11,653 Ending Revolver Balance $108,983 $86,309 $55,119 $22,919 $0 </TABLE> Confidential Roney & Co. <PAGE> 139 PROJECT TITAN 5 CONFIDENTIAL STAND ALONE DISCOUNTED CASH FLOW ANALYSIS 12/15/99 10:30 AM STAND ALONE FREE CASH FLOW <TABLE> <CAPTION> - ----------------------------------------------------------------------------------------------------------------------------- 06/30/00 06/30/01 06/30/02 06/30/03 06/30/04 -------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> EBITDA $48,816 $59,979 $68,927 $72,811 $73,201 Less: Depreciation & Amortization Expense (17,113) (19,338) (21,863) (20,968) (20,968) -------------------------------------------------------------------- Taxable Operating Profit $31,703 $40,640 $47,064 $51,843 $52,233 Less: Income Taxes (11,096) (14,224) (16,472) (18,145) (18,282) -------------------------------------------------------------------- Cash From Operations $20,607 $26,416 $30,592 $33,698 $33,952 Plus: Depreciation & Amortization Expense 17,113 19,338 21,863 20,968 20,968 Less: Working Capital Needs (5,144) (6,475) (4,659) (2,361) (241) Less: Capital Expenditures (22,000) (16,500) (16,500) (20,000) (20,000) -------------------------------------------------------------------- Free Cash Flow $10,577 $22,780 $31,295 $32,304 $34,678 ==================================================================== - ----------------------------------------------------------------------------------------------------------------------------- </TABLE> STAND ALONE TERMINAL VALUE <TABLE> - ----------------------------------------------------------------------------------------------- <S> <C> Discount Rate 13.00% Terminal EBITA Multiple 6.0x Terminal Value (Year 10 Cash Flow Capitalized) $319,207 - ----------------------------------------------------------------------------------------------- </TABLE> SHARES OUTSTANDING <TABLE> - ------------------------------------------------------------------------------------------------ <S> <C> Common Shares Outstanding 6,307 Options Outstanding 704 ------------- Fully Diluted Shares Outstanding 7,011 ============= Option Proceeds at Average Price of $10.06 $7,078 - ------------------------------------------------------------------------------------------------ </TABLE> STAND ALONE VALUATION <TABLE> <CAPTION> - ----------------------------------------------------------------------------------------------- <S> <C> Cumulative Present Value of Cash Flows $87,524 Plus: Present Value of Terminal Value 173,253 ------------ Stand Alone Enterprise Value $260,776 Less: Market Value of Debt ($114,038) Plus: Excess Cash 3,654 Plus: Options Proceeds 7,078 ------------ Shareholder Value $157,470 ============ Shareholder Value per Diluted Share $22.5 ============ - ----------------------------------------------------------------------------------------------- </TABLE> SHAREHOLDER VALUE SENSITIVITY ANALYSIS <TABLE> <CAPTION> - ------------------------------------------------------------------------------------------------------------- TERMINAL EBITA MULTIPLE DISCOUNT RATE 5.5X 6.0X 6.5X - ------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> 11.00% $163,101 $23.3 $178,887 $25.5 $194,673 $27.8 12.00% $152,812 $21.8 $167,906 $24.0 $183,000 $26.1 13.00% $143,032 $20.4 $157,470 $22.5 $171,908 $24.5 14.00% $133,731 $19.1 $147,547 $21.0 $161,362 $23.0 15.00% $124,881 $17.8 $138,106 $19.7 $151,331 $21.6 - ------------------------------------------------------------------------------------------------------------- </TABLE> Confidential Roney & Co. <PAGE> 140 PROJECT TITAN 6 CONFIDENTIAL Multiple Analysis 12/15/99 3:15 PM <TABLE> <CAPTION> EBIT EBITDA SALES OFFER FOR VALUE/EBIT 1999 2000 1999 2000 1999 2000 PROJECT TITAN 1999 2000 - ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> <C> <C> <C> $18,775 $31,703 $32,659 $48,816 $179,726 $203,577 $146,687 7.8x 4.6x $18,775 $31,703 $32,659 $48,816 $179,726 $203,577 $195,582 10.4x 6.2x $18,775 $31,703 $32,659 $48,816 $179,726 $203,577 $260,776 13.9x 8.2x $18,775 $31,703 $32,659 $48,816 $179,726 $203,577 $325,971 17.4x 10.3x $18,775 $31,703 $32,659 $48,816 $179,726 $203,577 $407,463 21.7x 12.9x Roney & Co. Trading Multiple Range 6.2x to 17.1x Mean 9.8x Roney & Co. Transaction Multiple Mean n/a <CAPTION> EBIT VALUE/EBITDA VALUE/SALES 1999 2000 1999 2000 1999 2000 - --------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> $18,775 $31,703 4.5x 3.0x 0.8x 0.7x $18,775 $31,703 6.0x 4.0x 1.1x 1.0x $18,775 $31,703 8.0x 5.3x 1.5x 1.3x $18,775 $31,703 10.0x 6.7x 1.8x 1.6x $18,775 $31,703 12.5x 8.3x 2.3x 2.0x Roney & Co. Trading Multiple 4.3x to 15.6x 0.2x to 5.6x 6.5x 1.0x Roney & Co. Transaction Multiple 6.8x 6.0x n/a n/a </TABLE> Confidential Roney & Co. <PAGE> 141 IIIA - AUTOCAM CORPORATION 3 - Comparable Company Analysis <PAGE> 142 - -------------------------------------------------------------------------------- PROJECT TITAN COMPARABLE PUBLIC COMPANY ANALYSIS - -------------------------------------------------------------------------------- MARKET COMPARISON APPROACH This approach assumes that a degree of comparability exists between the Company and other similar firms for which a value has been established over a five-year time horizon in an active and free trading market. Once similarity is established, the relationship to market value is expressed as a Price/Earnings ratio. This ratio, then, may be modified to reflect special conditions, risks, or opportunities, which are unique to the Company. There are obvious problems in identifying publicly traded firms whose total business parallels the Company's. Generally, the Company's area of operations is not identically represented in the operations of the companies to which it is being compared. Despite this difficulty, we feel this method provides a valid technique for the valuation of the Company in a stable market environment over a suitable analytical period. ====================================================================== AUTOMOTIVE GROUP MARKET COMPARABLE ANALYSIS - SUMMARY OF MULTIPLES ---------------------------------------------------------------------- <TABLE> <CAPTION> AGGREGATE VALUE AS A MULTIPLE OF LTM ---------------------------------------- SALES EBIT EBITDA ---------------------------------------- <S> <C> <C> <C> Mean 1.0x 9.8x 6.5x Median 0.8x 9.2x 5.5x High 5.6x 17.1x 15.6x Low 0.2x 6.2x 4.3x Current ACAM (Pro Forma) 1.0x 9.4x 5.9x ====================================================================== </TABLE> FINANCIAL SUMMARY ================================================================================ AUTOCAM CORPORATION FINANCIAL SUMMARY For the twelve months ended June 30, ($'s in thousands) - -------------------------------------------------------------------------------- <TABLE> <CAPTION> HISTORICAL FORECASTED ----------------------------------------------------------------------- ACTUAL PRO FORMA ACTUAL PRO FORMA ACTUAL ----------------------------------------------------------------------- 1996 1997 1998 1998 1999 1999 2000 ----------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> Total Sales $57,711 $61,986 $90,362 $180,601 $179,726 $199,417 $203,577 Sales Growth 6.3% 7.4% 45.8% 99.9% 98.9% 10.4% 1.6% EBIT $9,899 $9,584 $14,673 $26,453 $18,775 $20,367 $31,702 Adjustments $963 $1,033 $1,042 $1,042 $964 $964 $934 ----------------------------------------------------------------------- Adjusted EBIT $10,862 $10,617 $15,715 $27,495 $19,739 $21,331 $32,636 Adjusted EBIT % 18.8% 17.1% 17.4% 15.2% 11.0% 10.7% 16.0% Depreciation $4,671 $5,319 $7,203 $12,451 $12,877 $14,157 $15,918 Amortization $212 $212 $451 $451 $1,006 $1,006 $1,196 ----------------------------------------------------------------------- Adjusted EBITDA $15,641 $16,044 $23,369 $40,396 $33,622 $36,494 $49,750 ======================================================================= Adjusted EBITDA % 27.1% 25.9% 25.9% 22.4% 18.6% 18.3% 24.4% ======================================================================= ================================================================================================== </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 143 - -------------------------------------------------------------------------------- PROJECT TITAN COMPARABLE PUBLIC COMPANY ANALYSIS - -------------------------------------------------------------------------------- COMPARABLE PUBLIC COMPANY VALUATION SUMMARY ================================================================================ AUTOCAM CORPORATION COMPARABLE PUBLIC COMPANY VALUATION SUMMARY ($'s in thousands) - -------------------------------------------------------------------------------- <TABLE> <CAPTION> 1999 ACTUAL 1999 PRO FORMA ------------------------------------------ -------------------------------------- SALES EBIT EBITDA SALES EBIT EBITDA ------------ -------------- -------------- ----------- ------------- ------------ <S> <C> <C> <C> <C> <C> <C> ADJUSTED FINANCIAL INFORMATION $179,726 $19,739 $33,622 $199,417 $21,331 $36,494 Mean Multiple 1.0x 9.8x 6.5x 1.0x 9.8x 6.5x IMPLIED ENTERPRISE VALUE $179,726 $193,442 $218,543 $199,417 $209,044 $237,211 SHAREHOLDER VALUE ADJUSTMENTS: Less: Funded Debt ($114,038) ($114,038) ($114,038) ($114,038) ($114,038) ($114,038) Plus: Excess Cash $3,654 $3,654 $3,654 $3,654 $3,654 $3,654 Plus: Option Proceeds $7,078 $7,078 $7,078 $7,078 $7,078 $7,078 ------------ -------------- -------------- ----------- ------------- ------------ $103,306 $103,306 $103,306 $103,306 $103,306 $103,306 IMPLIED SHAREHOLDER VALUE $76,420 $90,136 $115,237 $96,111 $105,738 $133,905 Fully Diluted Shares Outstanding 7,011 7,011 7,011 7,011 7,011 7,011 IMPLIED SHAREHOLDER VALUE PER SHARE $10.9 $12.9 $16.4 $13.7 $15.1 $19.1 - ------------------------------------------------------------------------------------------------------------------------------ <CAPTION> ============================================================================================================================== 2000 ===================================== SALES EBIT EBITDA ----------- ------------ ------------ <S> <C> <C> <C> ADJUSTED FINANCIAL INFORMATION $203,577 $32,636 $49,750 Mean Multiple 1.0x 9.8x 6.5x IMPLIED ENTERPRISE VALUE $203,577 $319,833 $323,375 SHAREHOLDER VALUE ADJUSTMENTS: Less: Funded Debt ($114,038) ($114,038) ($114,038) Plus: Excess Cash $3,654 $3,654 $3,654 Plus: Option Proceeds $7,078 $7,078 $7,078 ----------- ------------ ------------ $103,306 $103,306 $103,306 IMPLIED SHAREHOLDER VALUE $100,271 $216,527 $220,069 Fully Diluted Shares Outstanding 7,011 7,011 7,011 IMPLIED SHAREHOLDER VALUE PER SHARE $14.3 $30.9 $31.4 - ---------------------------------------------------------------------------- ============================================================================ </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 144 - -------------------------------------------------------------------------------- TRADING MULTIPLES FOR SELECTED COMPARABLE COMPANIES - -------------------------------------------------------------------------------- <PAGE> 145 - -------------------------------------------------------------------------------- TRADING MULTIPLES FOR SELECTED COMPARABLE COMPANIES - -------------------------------------------------------------------------------- <TABLE> <CAPTION> 9/1/99 52 WEEK 52 WEEK MARKET HEAD STOCK HIGH LOW VALUE OF NET ENTERPRISE LTM COMPANY QUARTERS PRICE PRICE PRICE EQUITY DEBT VALUE SALES ($MM) ($MM) ($MM) ($MM) - ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> <C> <C> <C> COMPARABLE AUTOMOTIVE COMPANIES Autocam Corporation (ACAM) MI $ 13.0 $ 16.5 $ 8.0 $ 81.2 $ 110.4 $ 191.6 $ 199.4(1) Arvin Industries, Inc. (ARV) IN $ 35.5 $ 44.1 $ 30.9 $ 904.0 $ 531.9 $ 1,435.9 $ 2,839.7 Dana Corporation (DCN) OH $ 42.8 $ 54.1 $ 31.3 $ 6,889.0 $ 3,707.9 $ 10,596.9 $ 12,782.4 Donnely Corporation (DON) MI $ 16.2 $ 17.5 $ 12.1 $ 94.3 $ 115.9 $ 210.2 $ 871.6 Dura Automotive Systems (DRRA) MN $ 25.9 $ 35.0 $ 19.3 $ 367.6 $ 668.7 $ 1,036.3 $ 1,376.2 Gentex Corporation (GNTX) MI $ 20.6 $ 34.9 $ 10.8 $ 1,501.0 ($ 117.4) 1,383.6 $ 246.5 Gencorp, Inc. (GY) OH $ 21.9 $ 27.9 $ 16.4 $ 878.2 $ 351.0 $ 1,229.2 $ 1,894.1 Intermet Corporation (INMT) MI $ 11.8 $ 18.1 $ 8.5 $ 298.7 $ 199.4 $ 498.1 $ 888.6 The Lamson & Sessions Company (LMS) OH $ 5.3 $ 6.9 $ 3.9 $ 70.6 $ 49.2 $ 119.8 $ 276.6 Lear Corporation (LEA) MI $ 40.7 $ 53.9 $ 29.8 $ 2,711.0 $ 3,318.9 $ 6,029.9 $ 10,773.1 Mascotech, Inc. (MSX) MI $ 16.8 $ 19.9 $ 14.0 $ 731.5 $ 1,280.0 $ 2,011.5 $ 1,686.4 Modine Manufacturing Company (MODI) WI $ 29.6 $ 38.6 $ 25.3 $ 876.6 $ 175.5 $ 1,052.1 $ 1,122.2 Shiloh Industries, Inc. (SHLO) DE $ 12.0 $ 19.0 $ 7.8 $ 157.0 $ 146.6 $ 303.6 $ 314.6 Simpson Industries, Inc. (SMPS) MI $ 12.2 $ 12.6 $ 8.5 $ 218.5 $ 99.4 $ 317.9 $ 514.7 Superior Industries International (SUP) CA $ 27.9 $ 29.4 $ 20.1 $ 734.4 ($ 93.9) 640.5 $ 556.9 Tower Automotive, Inc. (TWR) MN $ 20.4 $ 28.3 $ 15.5 $ 944.6 $ 573.6 $ 1,518.2 $ 1,942.7 <CAPTION> LTM LTM OPERATING EBITDA MARGIN MARGIN ($MM) ($MM) - ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> COMPARABLE AUTOMOTIVE COMPANIES Autocam Corporation (ACAM) $ 20.4 $ 10.2%(1) $ 35.5 $ 17.8% Arvin Industries, Inc. (ARV) $ 172.2 $ 6.1% $ 275.4 $ 9.7% Dana Corporation (DCN) $ 986.8 $ 7.7% $ 1,509.6 $ 11.8% Donnely Corporation (DON) $ 17.8 $ 2.0% $ 41.9 $ 4.8% Dura Automotive Systems (DRRA) $ 132.7 $ 9.6% $ 183.2 $ 13.3% Gentex Corporation (GNTX) $ 80.7 $ 32.8% $ 88.7 $ 36.0% Gencorp, Inc. (GY) $ 171.1 $ 9.0% $ 230.2 $ 12.2% Intermet Corporation (INMT) $ 79.9 $ 9.0% $ 116.0 $ 13.1% The Lamson & Sessions Company (LMS) $ 10.1 $ 3.6% $ 19.5 $ 7.1% Lear Corporation (LEA) $ 536.1 $ 5.0% $ 799.4 $ 7.4% Mascotech, Inc. (MSX) $ 218.2 $ 12.9% $ 0.0 $ 0.0% Modine Manufacturing Company (MODI) $ 110.7 $ 9.9% $ 154.9 $ 13.8% Shiloh Industries, Inc. (SHLO) $ 23.6 $ 7.5% $ 40.5 $ 12.9% Simpson Industries, Inc. (SMPS) $ 37.0 $ 7.2% $ 63.9 $ 12.4% Superior Industries International (SUP) $ 95.0 $ 17.1% $ 121.7 $ 21.9% Tower Automotive, Inc. (TWR) $ 202.5 $ 10.4% $ 297.4 $ 15.3% </TABLE> (1) Amounts represent pro forma results to reflect F&P results for the first quarter of fiscal 1999. <PAGE> 146 - -------------------------------------------------------------------------------- TRADING MULTIPLES FOR SELECTED COMPARABLE COMPANIES PG.2 - -------------------------------------------------------------------------------- <TABLE> <CAPTION> ENTERPRISE VALUE MULTIPLES: MARKET VALUE MULTIPLES: --------------------------- ----------------------- OPERATING NET BOOK SALES EBITDA INCOME INCOME VALUE - ------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> COMPARABLE AUTOMOTIVE COMPANIES Autocam Corporation (ACAM) 1.0x 5.4x 9.4x 12.9x 11.4x Arvin Industries, Inc. (ARV) 0.5x 5.2x 8.3x 10.3x 41.5x Dana Corporation (DCN) 0.8x 7.0x 10.7x 11.8x 380.2x Donnely Corporation (DON) 0.2x 5.0x 11.8x 13.9x 0.9x Dura Automotive Systems (DRRA) 0.8x 5.7x 7.8x 10.6x 16.1x Gentex Corporation (GNTX) 5.6x 15.6x 17.1x 24.9x 388.9x Gencorp, Inc. (GY) 0.6x 5.3x 7.2x 8.8x 97.1x Intermet Corporation (INMT) 0.6x 4.3x 6.2x 6.5x 33.6x The Lamson & Sessions Company (LMS) 0.4x 6.1x 11.9x 7.7x 1.5x Lear Corporation (LEA) 0.6x 7.5x 11.2x 21.2x 139.5x Mascotech, Inc. (MSX) 1.2x n/a 9.2x 8.6x 124.4x Modine Manufacturing Company (MODI) 0.9x 6.8x 9.5x 11.9x 55.6x Shiloh Industries, Inc. (SHLO) 1.0x 7.5x 12.8x 14.5x 12.2x Simpson Industries, Inc. (SMPS) 0.6x 5.0x 8.6x 13.0x 31.7x Superior Industries International (SUP) 1.2x 5.3x 6.7x 11.9x 59.4x Tower Automotive, Inc. (TWR) 0.8x 5.1x 7.5x 8.9x 69.3x MEAN (EXCLUDING ACAM): 1.0x 6.5x 9.8x 12.3x 96.8x MEDIAN (EXCLUDING ACAM): 0.8x 5.5x 9.2x 11.8x 55.6x HIGH (EXCLUDING ACAM): 5.6x 15.6x 17.1x 24.9x 388.9x LOW (EXCLUDING ACAM): 0.2x 4.3x 6.2x 6.5x 0.9x <CAPTION> STOCK PRICE AS A MULTIPLE OF IBES: ------------------------------------------ LTM 1999 2000 EPS EPS EPS ------------------------------------------ <S> <C> <C> <C> <C> <C> <C> COMPARABLE AUTOMOTIVE COMPANIES Autocam Corporation (ACAM) 0.96 13.5x 1.73 7.5x 2.36 5.5x Arvin Industries, Inc. (ARV) 3.57 9.9x 3.69 9.6x 4.14 8.6x Dana Corporation (DCN) 3.51 12.2x 4.33 9.9x 4.94 8.7x Donnely Corporation (DON) 0.66 24.5x 1.56 10.4x NA NA Dura Automotive Systems (DRRA) 2.38 10.9x 3.37 7.7x 3.90 6.7x Gentex Corporation (GNTX) 0.80 25.8x 0.86 23.9x 1.04 19.9x Gencorp, Inc. (GY) 2.36 9.3x 2.29 9.6x 2.60 8.4x Intermet Corporation (INMT) 1.79 6.6x 1.74 6.8x 2.02 5.9x The Lamson & Sessions Company (LMS) 0.68 7.7x 0.70 7.5x 0.85 6.2x Lear Corporation (LEA) 1.89 21.5x 3.72 10.9x 4.48 9.1x Mascotech, Inc. (MSX) 1.67 10.1x 1.80 9.3x 1.97 8.5x Modine Manufacturing Company (MODI) 2.44 12.1x 2.58 11.5x NA NA Shiloh Industries, Inc. (SHLO) 0.84 14.3x 1.21 9.9x 1.69 7.1x Simpson Industries, Inc. (SMPS) 0.93 13.1x 1.13 10.8x 1.26 9.7x Superior Industries International (SUP) 2.27 12.3x 2.46 11.3x 2.59 0.7x Tower Automotive, Inc. (TWR) 1.95 10.4x 2.08 9.8x 2.51 8.1x MEAN (EXCLUDING ACAM): 13.4x 10.6x 9.0x MEDIAN (EXCLUDING ACAM): 12.1x 9.9x 8.5x HIGH (EXCLUDING ACAM): 25.8x 23.9x 19.9x LOW (EXCLUDING ACAM): 6.6x 6.8x 5.9x </TABLE> <PAGE> 147 IIIA-AUTOCAM CORPORATION 4-Comparable Transactions Analysis <PAGE> 148 - -------------------------------------------------------------------------------- PROJECT TITAN MERGER AND ACQUISITION MULTIPLES - -------------------------------------------------------------------------------- ACQUISITION VALUE The acquisition value of a company seeks to estimate the price at which the company would "trade in the market for corporate control." Acquisition value is the price an acquirer would pay to control the target's assets and the free cash flows (FCF) they generate. Transactions occur in the public market almost daily at prices significantly above current secondary trading levels. The premium paid over the market trading level of the stock of a company is, in fact, a derived figure rather than an analytical tool(1). When the various valuation methods justify a price over current trading prices, then a premium price is paid. The price paid rests on the conclusion of the analysis. To some degree, the prices paid are a result of the intense amount of competition among buyers for quality businesses and to a greater degree they reflect the economic benefits of all the synergies that a buyer may bring to a seller in a corporate combination. Thus, the value of a company (its intrinsic value) as an independent entity often will be different than the value of the company when it is combined with another firm. The acquisition value will reflect incremental cash flow generated by consolidated tax savings, cost savings due to the elimination of redundant operations, distribution economies, or other business benefits. The first step in this approach is to determine a sample of comparable companies that have been involved in a merger or acquisition. From a comparability standpoint, we look at the following aspects of a company: industry, products, processes, customers, distribution channels, and suppliers among others. EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") ================================================================================ AUTOCAM CORPORATION FINANCIAL SUMMARY For the twelve months ended June 30, ($'s in thousands) - -------------------------------------------------------------------------------- <TABLE> <CAPTION> HISTORICAL FORECASTED ----------------------------------------------------------------------- ACTUAL PRO FORMA ACTUAL PRO FORMA ACTUAL ----------------------------------------------------------------------- 1996 1997 1998 1998 1999 1999 2000 ----------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> Total Sales $57,711 $61,986 $90,362 $180,601 $179,726 $199,417 $203,577 Sales Growth 6.3% 7.4% 45.8% 99.9% 98.9% 10.4% 1.6% EBIT $ 9,899 $ 9,584 $14,673 $ 26,453 $ 18,775 $ 20,367 $ 31,702 Adjustments $ 963 $ 1,033 $ 1,042 $ 1,042 $ 964 $ 964 $ 934 ----------------------------------------------------------------------- Adjusted EBIT $10,862 $10,617 $15,715 $ 27,495 $ 19,739 $ 21,331 $ 32,636 Adjusted EBIT % 18.8% 17.1% 17.4% 15.2% 11.0% 10.7% 16.0% Depreciation $ 4,671 $ 5,319 $ 7,203 $ 12,451 $ 12,877 $ 14,157 $ 15,918 Amortization $ 212 $ 212 $ 451 $ 451 $ 1,006 $ 1,006 $ 1,196 ----------------------------------------------------------------------- Adjusted EBITDA $15,641 $16,044 $23,369 $ 40,396 $ 33,622 $ 36,494 $ 49,750 ======================================================================= Adjusted EBITDA % 27.1% 25.9% 25.9% 22.4% 18.6% 18.3% 24.4% ======================================================================= Average Historical EBITDA Multiple 6.8x 6.8x Average Forecasted EBITDA Multiple 6.0x IMPLIED ENTERPRISE VALUE $228,629 $248,159 $298,500 ================================================================================================== </TABLE> - -------- (1) See Judson P. Reis, "The Fine Art of Valuation", Mergers & Acquisition Handbook - -------------------------------------------------------------------------------- RONEY & CO. INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 149 - -------------------------------------------------------------------------------- PROJECT TITAN MERGER AND ACQUISITION MULTIPLES - -------------------------------------------------------------------------------- COMPARABLE ACQUISITION VALUATION SUMMARY <TABLE> <CAPTION> ============================================================================================================================== AUTOCAM CORPORATION COMPARABLE ACQUISITION VALUATION SUMMARY ($'s in thousands) - ------------------------------------------------------------------------------------------------------------------------------ 1999 ACTUAL 1999 PRO FORMA ---------------------------------------- ------------------------------------- LOW AVERAGE HIGH LOW AVERAGE HIGH MULTIPLE MULTIPLE MULTIPLE MULTIPLE MULTIPLE MULTIPLE ---------------------------------------- ------------------------------------- <S> <C> <C> <C> <C> <C> <C> ADJUSTED EBITDA $ 33,622 $ 33,622 $ 33,622 $ 36,494 $ 36,494 $ 36,494 Historical EBITDA Multiple(1) 4.8x 6.8x 11.8x 4.8x 6.8x 11.8x Forecasted EBITDA Multiple IMPLIED ENTERPRISE VALUE $161,386 $228,630 $396,740 $175,171 $248,159 $430,629 SHAREHOLDER VALUE ADJUSTMENTS: Less: Funded Debt ($114,038) ($114,038) ($114,038) ($114,038) ($114,038) ($114,038) Plus: Excess Cash $ 3,654 $ 3,654 $ 3,654 $ 3,654 $ 3,654 $ 3,654 Plus: Option Proceeds $ 7,078 $ 7,078 $ 7,078 $ 7,078 $ 7,078 $ 7,078 -------------------------------------- ---------------------------------- $103,306 $103,306 $103,306 $103,306 $103,306 $103,306 IMPLIED SHAREHOLDER VALUE $ 58,080 $125,324 $293,434 $ 71,865 $144,853 $327,323 Fully Diluted Shares Outstanding 7,011 7,011 7,011 7,011 7,011 7,011 IMPLIED SHAREHOLDER VALUE PER SHARE $ 8.3 $ 17.9 $ 41.9 $ 10.3 $ 20.7 $ 46.7 - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================================================================== <CAPTION> - --------------------------------------------------------------------------------- 2000 ---------------------------------------- LOW AVERAGE HIGH MULTIPLE MULTIPLE MULTIPLE ---------------------------------------- <S> <C> <C> <C> ADJUSTED EBITDA $ 49,750 $ 49,750 $ 49,750 Historical EBITDA Multiple(1) Forecasted EBITDA Multiple 4.2x 6.0x 7.4x IMPLIED ENTERPRISE VALUE $208,950 $298,500 $368,150 SHAREHOLDER VALUE ADJUSTMENTS: Less: Funded Debt ($114,038) ($114,038) ($114,038) Plus: Excess Cash $ 3,654 $ 3,654 $3,654 Plus: Option Proceeds $ 7,078 $ 7,078 $7,078 ---------------------------------------- $103,306 $103,306 $103,306 IMPLIED SHAREHOLDER VALUE $105,644 $195,194 $264,844 Fully Diluted Shares Outstanding 7,011 7,011 7,011 IMPLIED SHAREHOLDER VALUE PER SHARE $ 15.1 $ 27.8 $ 37.8 - -------------------------------------------------------------------------------- ================================================================================ </TABLE> - -------------------------------------------------------------------------------- RONEY & CO. INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 150 - -------------------------------------------------------------------------------- RECENT VALUATION COMPARABLES AS A MULTIPLE OF FORECASTED EBITDA - -------------------------------------------------------------------------------- <PAGE> 151 RECENT VALUATION COMPARABLES - FORECASTED EBITDA - -------------------------------------------------------------------------------- <TABLE> <CAPTION> - ----------------------------------------------------------------------------------------------------- COMPARABLE TRANSACTIONS ($'S IN THOUSANDS) Acquiror Amsted Industries, Inc. Cooper Tire & Rubber Co. Kelso & Co. Target Varlen Corporation Standard Products Co. Citation Corporation ----------------------- ------------------------- ---------------------- <S> <C> <C> <C> Transaction Date 8/1/99 7/27/99 6/24/99 Total Consideration $ 790,000 $ 757,400 $ 643,800 Forecasted Revenue $ 729,421 $ 1,101,900 $ 861,174 Forecasted EBITDA $ 120,902 $ 127,000 $ 110,789(3) FORECASTED EBITDA % 16.6% 11.5% 12.9% Synergies n/a $ 9,000 n/a Synergies as a % of Sales n/a 0.8% n/a Adjusted EBITDA n/a $ 136,000 n/a Adjusted EBITDA % n/a 12.3% n/a EBITDA Multiple 6.5x 6.0x 5.8x ADJUSTED EBITDA MULTIPLE N/A 5.6X N/A <CAPTION> - ----------------------------------------------------------------------------------------------------------- COMPARABLE TRANSACTIONS ($'S IN THOUSANDS) Acquiror Littlejohn & Co. LLC TI Group PLC Carreras Kestner & Co., LLC Target Durakon Industries Walbro Corporation Hilite Industries, Inc. -------------------- ----------------------- --------------------------- <S> <C> <C> <C> Transaction Date 6/18/99 6/17/99 4/27/99 Total Consideration $ 83,642 $ 630,300 $ 85,205 Forecasted Revenue $ 204,229 $ 783,544 $ 91,469 Forecasted EBITDA $ 20,078 $ 118,925 $ 15,160 FORECASTED EBITDA % 9.8% 15.2% 16.0% Synergies n/a n/a n/a Synergies as a % of Sales n/a n/a n/a Adjusted EBITDA n/a n/a n/a Adjusted EBITDA % n/a n/a n/a EBITDA MULTIPLE 4.2x 5.3x 5.6x ADJUSTED EBITDA MULTIPLE N/A N/A N/A </TABLE> (1) 1999 estimated EBITDA based upon LTM EBITDA %. (2) 1999 estimated EBITDA based upon EBIT estimates, historical D&A, and amortization related to purchase accounting. (3) 1999 estimated EBITDA based upon analyst's estimated EBIT plus calculated D&A based upon historical percentages. - -------------------------------------------------------------------------------- <TABLE> <CAPTION> - ------------------------------------------------------------------------------------------------------------ COMPARABLE TRANSACTIONS ($'S IN THOUSANDS) Acquiror American Axle & Target Mfg. Co. TRW, Inc. Dura Automotive Systems Colfor Manufacturing Lucas Varity plc Adwest Automotive plc ----------------------- ------------------------- ----------------------- <S> <C> <C> <C> Transaction Date 2/12/99 1/28/99 1/26/99 Total Consideration $ 168,000 $ 6,612,500 $ 330,000 Forecasted Revenue $ 135,000 $ 7,078,000 $ 425,000 Forecasted EBITDA $ 24,000 $ 896,600 $ 53,125(1) FORECASTED EBITDA % 17.8% 12.7% 12.5% Synergies $ 6,000 $ 70,800 $ 5,000 Synergies as a % of Sales 4.4% 1.0% 1.2% Adjusted EBITDA $ 30,000 $ 967,400 $ 58,125 Adjusted EBITDA % 22.2% 13.7% 13.7% EBITDA MULTIPLE 7.0x 7.4x 6.2x ADJUSTED EBITDA MULTIPLE 5.6x 6.8x 5.7x <CAPTION> - ---------------------------------------------------------------------------------------------------------------------------------- COMPARABLE TRANSACTIONS ($'S IN THOUSANDS) Acquiror General Chemical Target Group, Inc. Stoneridge Hayes Lemmerz International Defiance, Inc. Hi-Stat CMI International Average -------------------- ----------------------- --------------------------- ------------------ <S> <C> <C> <C> <C> Transaction Date 1/7/99 12/8/98 11/20/98 Total Consideration $ 73,432 $ 362,000 $ 605,000 Forecasted Revenue $ 100,000 $ 180,600 $ 675,000 Forecasted EBITDA $ 15,900 $ 53,000(2) $ 100,000 FORECASTED EBITDA % 15.9% 29.3% 14.8% 15.4% Synergies n/a n/a $ 10,500 Synergies as a % of Sales n/a n/a 1.6% 1.8% Adjusted EBITDA n/a n/a $ 110,500 Adjusted EBITDA % n/a n/a 16.4% 15.7% EBITDA MULTIPLE 4.6X 6.8X 6.1X 6.0X ADJUSTED EBITDA MULTIPLE N/A N/A 5.5X 5.8X - ----------------------------------------------------------------------------------------------------------------------------------- </TABLE> (1) 1999 estimated EBITDA based upon LTM EBITDA %. (2) 1999 estimated EBITDA based upon EBIT estimates, historical D&A, and amortization related to purchase accounting. (3) 1999 estimated EBITDA based upon analyst's estimated EBIT plus calculated D&A based upon historical percentages. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RONEY & CO. PAGE 1 OF 1 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 152 - -------------------------------------------------------------------------------- RECENT VALUATION COMPARABLES AS A MULTIPLE OF HISTORICAL EBITDA - -------------------------------------------------------------------------------- <PAGE> 153 ================================================================================ OVERVIEW OF AUTOMOTIVE SECTOR MULTIPLES PURCHASE PRICE AS A MULTIPLE OF HISTORICAL EBITDA [LINE GRAPH] - -------------------------------------------------------------------------------- TARGET/ACQUIROR* - -------------------------------------------------------------------------------- <TABLE> <S> <C> <C> <C> <C> <C> Cooper Automotive/Federal Mogul Corporation 8/98 6.6x Hilite Industries, Inc./Carreras Kestner & Co., LLC 4/99 6.1x CMI International/Hayes Lemmerz International 11/98 6.9x Varlen Corporation/Amsted Industries, Inc. 4/99 7.5x Hi-Stat/Stoneridge 12/98 11.8x Durakon Industries, Inc./Littlejohn & Co., LLC 6/99 4.8x Kuhlman Corporation/Borg-Warner Automotive 12/98 5.9x Walbro Corporation/TI Group Plc 6/99 7.1x Lucas Varity/TRW 1/99 6.8x Citation Corporation/Kelso & Co. 6/99 7.1x Defiance, Inc./General Chemical Group, Inc. 2/99 4.9x Standard Products Company/Cooper Tire & Rubber Company 6/99 6.4x Adwest Automotive PLC/Dura Automotive Systems 2/99 5.9x </TABLE> HIGH 11.8x LOW 4.8x MEAN 6.8x MEDIAN 6.6x - -------------------------------------------------------------------------------- * Information obtained from Securities Data Corporation and regulatory transaction filings. RONEY & CO. ================================================================================ <PAGE> 154 IIIA - AUTOCAM CORPORATION 5 - Premium Analysis <PAGE> 155 PROJECT TITAN COMPARABLE PURCHASE PRICE PREMIUMS [BAR GRAPH] <TABLE> <CAPTION> 30 Day Premium 60 Day Premium 90 Day Premium <S> <C> <C> <C> Kuhlman/Borg-Warner 35% 54% 19% Defiance/General Chemical 49% 36% 34% Hilite/Carreras 39% 48% 52% Varlen/Amsted 91% 96% 67% Durakon/Littlejohn 25% 35% 45% Walbro/TI Group 103% 132% 202% Citation/Kelso 39% 74% 67% Standard/Cooper Tire 60% 103% 113% ACAM/Acquiror* 51% 79% 110% </TABLE> *Assumes announcement date of 9/7/99 at $21 per share. <PAGE> 156 AUTOCAM CORPORATION STOCK PREMIUM ANALYSIS SUMMARY AS OF SEPTEMBER 1, 1999 [BAR GRAPH] <TABLE> <CAPTION> Last 10 Days Last 30 Days Last 90 Days Last 180 Days ------------ ------------ ------------ ------------- <S> <C> <C> <C> <C> Average ACAM Stock Price $ 13.16 $ 13.23 $ 12.21 $ 11.02 Average ACAM Offer Price $ 22.00 $ 22.00 $ 22.00 $ 22.00 Average ACAM Premium 67.2% 66.3% 80.2% 99.7% </TABLE> <PAGE> 157 AUTOCAM CORPORATION STOCK PREMIUM ANALYSIS LAST 10 DAYS AS OF SEPTEMBER 1, 1999 [LINE GRAPH] Stock Price Purchase Price ----------- -------------- 8/18/99 $12.63 -- 8/20/99 $13.06 -- 8/23/99 $13.50 -- 8/24/99 $13.25 -- 8/25/99 $13.25 -- 8/26/99 $13.25 -- 8/27/99 $13.12 -- 8/30/99 $13.13 -- 8/31/99 $13.19 -- 9/01/99 $13.00 -- <PAGE> 158 AUTOCAM CORPORATION STOCK PREMIUM ANALYSIS LAST 30 DAYS AS OF SEPTEMBER 1, 1999 [LINE GRAPH] <TABLE> <CAPTION> Stock Price Purchase Price ----------- -------------- <S> <C> <C> 7/22/99 $11.50 - 7/23/99 $11.50 - 7/26/99 $11.50 - 7/27/99 $11.75 - 7/28/99 $11.75 - 7/29/99 $12.00 - 7/30/99 $12.25 - 8/02/99 $12.00 - 8/03/99 $13.50 - 8/04/99 $13.50 - 8/05/99 $14.13 - 8/06/99 $14.00 - 8/09/99 $13.75 - 8/10/99 $13.45 - 8/11/99 $14.00 - 8/12/99 $13.00 - 8/13/99 $12.63 - 8/16/99 $13.25 - 8/17/99 $12.88 - 8/18/99 $13.00 - 8/19/99 $12.63 - 8/20/99 $13.06 - 8/23/99 $13.50 - 8/24/99 $13.25 - 8/25/99 $13.25 - 8/26/99 $13.25 - 8/27/99 $13.12 - 8/30/99 $13.13 - 8/31/99 $13.19 - 9/01/99 $13.00 - </TABLE> <PAGE> 159 AUTOCAM CORPORATION STOCK PREMIUM ANALYSIS LAST 90 DAYS AS OF SEPTEMBER 1, 1999 [LINE GRAPH] Date Stock Price Purchase Price - ---- ----------- -------------- 5/5/99 $ 9.88 $ 22.00 5/11/99 $ 9.38 $ 22.00 5/18/99 $ 9.06 $ 22.00 5/24/99 $ 9.00 $ 22.00 6/6/99 $ 9.88 $ 22.00 6/15/99 $ 11.75 $ 22.00 6/22/99 $ 11.50 $ 22.00 6/30/99 $ 11.50 $ 22.00 7/6/99 $ 11.72 $ 22.00 7/14/99 $ 11.25 $ 22.00 7/22/99 $ 11.63 $ 22.00 7/28/99 $ 11.75 $ 22.00 8/4/99 $ 13.50 $ 22.00 8/13/99 $ 14.00 $ 22.00 8/18/99 $ 12.88 $ 22.00 8/25/99 $ 13.50 $ 22.00 9/1/99 $ 13.00 $ 22.00 <PAGE> 160 AUTOCAM CORPORATION STOCK PREMIUM ANALYSIS LAST 180 DAYS AS OF SEPTEMBER 1, 1999 [LINE GRAPH] <PAGE> 161 AUTOCAM CORPORATION STOCK PRICE - DOW JONES INDUSTRIAL AVERAGE COMPARISON SINCE IPO DATE - 10/31/91 [LINE GRAPH] <PAGE> 162 IIIB -- AUTOCAM CORPORATION Purchaser Information <PAGE> 163 IIIC -- AUTOCAM CORPORATION Roney & Co. Fairness Opinion Letter <PAGE> 164 TO BE DISTRIBUTED AT A LATER DATE <PAGE> 165 IIID - AUTOCAM CORPORATION RONEY & CO. FAIRNESS NARRATIVE <PAGE> 166 EXHIBIT 99(b)(2) OCTOBER 28th, 1999 CONFIDENTIAL PRESENTATION TO THE BOARD OF DIRECTORS PROJECT TITAN <PAGE> 167 RAYMOND JAMES TABLE OF CONTENTS <PAGE> 168 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- TABLE OF CONTENTS - -------------------------------------------------------------------------------- 1. EXECUTIVE SUMMARY AND TRANSACTION OVERVIEW 2. PROCESS OVERVIEW 3. VALUATION ANALYSIS 4. STOCK PREMIUM ANALYSIS - -------------------------------------------------------------------------------- RAYMOND JAMES INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 169 RAYMOND JAMES 1 <PAGE> 170 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- EXECUTIVE SUMMARY AND TRANSACTION OVERVIEW - -------------------------------------------------------------------------------- RAYMOND JAMES INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 171 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- TRANSACTION OVERVIEW AND EXECUTIVE SUMMARY - -------------------------------------------------------------------------------- This presentation is intended to provide the Special Committee of the Board of Directors of Autocam Corporation ("Autocam") an overview of the proposed sale of the Company to Aurora Capital Group ("Aurora"). The proposed Total Consideration would be approximately $230.0 million or $18.75 per share. <TABLE> <CAPTION> SUMMARY TERMS ANTICIPATED TIMING ESTIMATED TRANSACTION MULTIPLES Event Date PROFORMA TRANSACTION ----- ---- 1999(1) MULTIPLES(2) -------- ------------ <S> <C> <C> <C> <C> - - Total Consideration of $230.0 million - - $18.75 per share implies an Equity Value of - Board Approval 10/28/99 Revenues ($199.4) 1.2x approximately $131.5 million, based on projected net indebtedness (debt less cash - Merger 11/05/99 EBITDA(4) ($36.5) 6.3x and option proceeds) as of December 31, Agreement 1999 Signed/ EBIT(4) ($21.2) 10.8x Announcement - - Approximately $131.5 million in cash for all EPS $1.27 >14.76x of the outstanding shares and options. - File with SEC 11/08/99 TRANSACTION - - Deal capitalized with $75 million of equity - SEC Effective 1/3/2000 2000(3) MULTIPLES(2) capital from Aurora and $40 million of rollover ----------------- ------------- equity capital from John Kennedy. - Notice of 1/5/2000 Revenues ($203.5) 1.1x Shareholders - - Senior Debt funding provided by Chase and Meeting EBITDA(4) ($49.7) 4.6x BancBoston in the amount of $165.0 million. - Shareholders 2/7/2000 EBIT(4) ($32.6) 7.1x - - Ernst & Young has completed their due Meeting diligence on both Aurora and the Bank TRANSACTION Group's behalf. - Closing 2/8/2000 REVISED 2000(5) MULTIPLES(2) ------------------------------------- - - Structure to be a One-Step Merger Revenues ($206.4) 1.1x - - Subject to antitrust approval (HSR) EBITDA(4) ($46.8) 4.9x EBIT(4) ($30.6) 7.5x ------------------------------------- (1) Includes the effect of F&P in the 1st quarter of Fiscal 1999. (2) Based on a Total Consideration of $230.0 million. (3) Based on projections provided by management and included in the Confidential Offering Memorandum. (4) EBIT AND EBITDA have been adjusted to include an addback of public company expenses totaling $964,000 annually. (5) Management provided revised financial information on 10/11/99 - ------------------------------------------------ ----------------------------------------- ------------------------------------- </TABLE> - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 1 OF 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 172 PROJECT TITAN CONFIDENTIAL - ------------------------------------------------------------------------------- SUMMARY TRANSACTION TERMS - ------------------------------------------------------------------------------- THE MERGER AGREEMENT PROVIDES FOR A MERGER SUB TO BE MERGED WITH AND INTO AUTOCAM CORPORATION WHEREAFTER THE SEPARATE CORPORATE EXISTENCE OF MERGER SUB SHALL THEREUPON CEASE. CURRENT SHAREHOLDERS AND OPTION HOLDERS SHALL RECEIVE $18.75 IN CASH CONSIDERATION FOR THERE SHARES AND OPTIONS. THE MERGER AGREEMENT INCLUDES: CUSTOMARY REPRESENTATIONS AND WARRANTIES: - Autocam: 32 Representations and Warranties - Merger Sub: 8 Representations and Warranties: NO financing out/although senior financing commitments have customary language related to financial market disruptions - Need to discuss Aurora Equity commitment process-EY to provide comfort on commitment availability CONDUCT PRIOR TO THE EFFECTIVE TIME: - Contains: customary points and restrictions - Continue to operate the business in the ordinary course during the pendancy of the Transaction - Contains: reference to Other Potential Acquirers: Superior Proposal Definition: All Cash/Premium of 6%/No financing contingency and not subject to due diligence-Under Negotiation - "No shop" and exclusivity provisions ADDITIONAL AGREEMENTS: Contains Indemnification Language-extinguished at Effective time-no shareholder indemnification - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 2 OF 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 173 PROJECT TITAN CONFIDENTIAL - ------------------------------------------------------------------------------- CUSTOMARY CONDITIONS TO THE MERGER: - Including Antitrust approval and no Material Adverse Change in the business - True up of Representations/Warranties as of Effective Date - No Material Litigation - Merger requires approval of 81% of the shareholders-Majority of the Minority TERMINATION PROVISIONS: - Superior Proposal language - Termination Fee of $5.0 million should Autocam accept a "Superior Proposal" within 12 months of the date of the Merger Agreement signing. - $1.5 million expense reimbursement in certain situations where the deal is not consummated. - Failure to obtain necessary regulatory or other consents ADDITIONAL AGREEMENTS: EMPLOYMENT AGREEMENT, NONCOMPETITION AGREEMENT, SHAREHOLDER AGREEMENT, LIMITED PARTNERSHIP AGREEMENT ADDITIONAL ITEMS: - Revised Financial Forecasts for the Fiscal Year ended 06/30/00 convey an unadjusted EBITDA level of $45.9mm respectively. - Funded Debt at closing of less than $109,500 (net funded debt is projected to be $105.6mm at 12/31/99). - F & P earnout status at 12/31/99. - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 3 OF 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 174 PROJECT TITAN CONFIDENTIAL - ------------------------------------------------------------------------------- PRINCIPAL SHAREHOLDER ITEMS - The Principal stockholder's future compensation and benefits are consistent with the pre-transaction compensation and benefits. - The Principal Shareholder's rollover equity contribution, of approximately $40mm, being valued, for purpose of inclusion into the new capital structure, at $18.75 per share or the same as the public shareholders. - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 4 OF 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 175 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- EQUITY PURCHASE PRICE CALCULATION - ------------------------------------------------------------------------- AUTOCAM EQUITY PURCHASE PRICE CALCULATION (DOLLARS IN MILLIONS) - ------------------------------------------------------------------------- ADJUSTMENTS(1) - ------------------------------------------------------------------------- TOTAL CONSIDERATION: $230.0 Adjustments: Net Debt (as of 12/31/99)(2) ($105.6) Option Proceeds(3) $7.1 ------- ($98.5) Net Adjustments: ($98.5) ------ ESTIMATED EQUITY VALUE PURCHASE PRICE $131.5 APPROX. SHARES AND OPTIONS OUTSTANDING (AS OF JUNE 30, 1999) 7.011 ------ ESTIMATED EQUITY VALUE PURCHASE PRICE PER SHARE $18.75 ====== - ------------------------------------------------------------------------- Note: (1) All figures provided by management of the Company. (2) Assumes net debt (debt less cash) of $105.6 million as of December 31, 1999. (3) Assumes that 703,551 options are outstanding at December 31, 1999 with an exercise price of $10.06/share. - -------------------------------------------------------------------------------- RAYMOND JAMES Page 5 of 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 176 RAYMOND JAMES 2 <PAGE> 177 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PROCESS OVERVIEW - -------------------------------------------------------------------------------- RAYMOND JAMES INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 178 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PROCESS OVERVIEW - -------------------------------------------------------------------------------- [PRELIMINARY SCHEDULE CALENDARS] JUNE 18, 1999 JULY 19, 1999 AUGUST 9, 1999 AUGUST 27, 1999 SEPTEMBER 1999 OCTOBER 28, 1999 - - June 18th Preliminary Indications of Interest Received (1 Strategic/8 Financial) - - July 19th Revised Indications of Interest Received (1 Strategic/8 Financial) - - August 3rd - August 26th Management Presentations and Data Room Visits (1 Strategic/4 Financial) - - August 9th Distribution of Merger Agreement and Bidding Process Letter - - August 27th Final Bid Date - - October 28th Board of Directors meeting to update and decide on approval of a transaction - - Nov. 5th (Tentative) Approve and Sign Merger Agreement and Announce Transaction - - February 8th (Tentative) Closing - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 6 OF 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 179 PROJECT TITAN TRANSACTION TIMELINE (APPROXIMATE) [CALENDARS] - -------------------------------------------------------------------------------- SEPTEMBER 1999 OCTOBER 28, 1999 NOVEMBER 5 1999 DECEMBER 1999 JANUARY 3, 2000 FEBRUARY 8 2000 KEY DEADLINES <TABLE> <CAPTION> DATE ITEM OF IMPORTANCE RESPONSIBILITY - ---- ------------------ -------------- <S> <C> <C> Sept 15-19 Ernst & Young ("E & Y") in Grand Rapids to complete due diligence Sept 16 Merger Agreement ("MA") received by Dickinson Wright ("DW") from Gibson Dunn ("GD") Sept 16-24 Complete disclosure schedules for MA Sept 17 ACAM team to review mechanical issues of MA AND submit comments to GD Sept 20 All hands meeting in Chicago to discuss business/other issues of MA Sept 20-22 EY in France and Brazil Sept 21-23 JK in France at F&P board meeting Sept 23-25 Financing commitment received by Aurora Sept 24 All hands meeting to discuss final business/other issues of MA Sept 24 Special Committee Meeting in Grand Rapids OCT 28 BOARD OF DIRECTORS MEETING - TO UPDATE AND DECIDE ON APPROVAL OF THE TRANSACTION Oct 29 Regular date for ACAM Earnings Release NOV 5 MERGER AGREEMENT EXECUTED / PUBLIC ANNOUNCEMENT Nov 8 HSR Filing and EEC Filing if required Nov 9 File appropriate documents with SEC (Proxy/Merger Agreement/8K....etc) Nov 19 Receive word from the SEC on review vs. no review Dec 22 Receive SEC comments Dec 28 Respond to SEC comments JAN 3 SEC EFFECTIVE Jan 5 Provide notice of shareholders meeting Feb 7 Shareholders meeting / Approval date FEB 8 CLOSING OF THE TRANSACTION </TABLE> - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 7 OF 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 180 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- MARKETING PROGRAM OVERVIEW -- PHASE I - -------------------------------------------------------------------------------- - Raymond James (formerly Roney & Co) is please to report a successful completion of the first stage of the sale process for Titan. - Raymond James/Roney conducted a broad auction process, initially contacting 73 financial investors and 15 strategic investors. Of those, 39 companies (5 strategic -- 34 financial buyers) submitted a signed Confidentiality Agreement and received Confidential Summary Information Memorandums. In addition, we received seven confidentiality agreements with significant changes. The following chart details the status of the seven parties that we were unable to come to mutual terms on the confidentiality agreement: ------------------------------------------------------------------------ DATE CA CONF. AGR. COMPANY NAME RECEIVED ACCEPTED COMMENTS ------------------------------------------------------------------------ Advent International 6/3/99 Changes Were uncomfortable with entire agreement. ------------------------------------------------------------------------ AEA Investors, Inc. 6/3/99 Changes Did not agree with affiliates language. ------------------------------------------------------------------------ First Atlantic Capital, Ltd. 6/2/99 Changes Were uncomfortable with entire agreement. ------------------------------------------------------------------------ GTCR Golder Rauner, LLC 6/3/99 Changes Did not agree with affiliates language. ------------------------------------------------------------------------ Latona Associates, Inc. (GENTEK) 6/7/99 Changes Were uncomfortable with entire agreement. ------------------------------------------------------------------------ Penske Capital Partners 6/2/99 Changes Did not agree with affiliates language. ------------------------------------------------------------------------ Thomas H. Lee Company 6/7/99 new - sign Ultimately Req. signed agreement but indicated lack of interest due to size prior to delivery of memorandum. ------------------------------------------------------------------------ - At the Company's request Raymond James / Roney did not contact those Companies that were involved in the previous process conducted in 1997. In addition, at the Company's request, Dover Corporation was not contacted due to the discussions already in process. - The response has been very strong, and we have received 9 indications of interest from prospective buyers. 11 parties have not indicated whether or not they will be submitting an indication of interest. We are continuously contacting these parties and should have an understanding of their intentions by Monday June 28th, 1999. - Latona Associates/Gentek signed a confidentiality agreement on August 9th, thus bringing the number of groups receiving the Confidential Summary Information Memorandum to 40. - -------------------------------------------------------------------------------- RAYMOND JAMES Page 8 of 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 181 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- MARKETING PROGRAM OVERVIEW - PHASE I/PHASE II - -------------------------------------------------------------------------------- Raymond James / Roney contacted a wide range of potential bidders including strategic buyers and financial investors. 88 parties were contacted and Confidential Summary Information Memorandums were sent to 39 (40 including Latona) of the 46 parties who responded. 9 (10 including Latona) parties submitted Preliminary Indications of Interest upon receiving the Confidential Summary Information Memorandum. [BAR GRAPH] - -------------------------------------------------------------------------------- RAYMOND JAMES Page 9 of 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 182 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- CONFIDENTIAL SUMMARY INFORMATION MEMORANDUMS SENT -- PHASE II - -------------------------------------------------------------------------------- CONFIDENTIAL SUMMARY INFORMATION MEMORANDUMS SENT (40) FINANCIAL (34) STRATEGIC (6) - -------------- ------------- - - American Industrial Partners - HARVEST PARTNERS, INC. - GROUPE VALFOND SA - - Apollo Management IV, L.P. - J.F. Lehman & Company - HIDDEN CREEK INDUSTRIES - - Aurora Capital Group - Kelso & Company - Latona Associates (Gentek) - - Bain Capital, Inc. - Kirtland Capital Partners - LINAMAR CORPORATION - - BERKSHIRE PARTNERS, LLC - Lehman Brothers Merchant - Simpson Banking Industries, Inc. - - Bessemer Partners & Co. - Leonard Green & Partners - TOMKINS PLC - - Carreras, Kestner & Co., LLC - Lnsalata Capital Partners - - Castle Harlan, Inc. - Metal Forming Technologies, Inc. - - Charter Oak Capital - ODYSSEY INVESTMENT PARTNERS, Partners, L.P. LLC - - Citicorp Venture Capital - Questor Management Company - - Cornerstone Equity - Saunders Karp & Megrue, L.P. Investors, LLC - - CORTEC MANAGEMENT LLC - Stonington Partners, Inc. - - CRAVEY, GREEN & WAHLEN, INC. - THE CARLYLE GROUP - - DLJ Merchant Banking II, INC. - The Riverside Company - - Dubilier & Company - The Veritas Capital Fund L.P. - - E.M. WARBURG, PINCUS & CO., - Wind Point Partners LLC - - Harbour Group Ltd. - Wingate Partners, L.P. - -------------------------------------------------------------------------------- LEGEND: - - Preliminary indication of interest submitted (10) - - Will not be submitting (19) - - NO RESPONSE OR REQUIRE ADDITIONAL INFORMATION (11) - -------------------------------------------------------------------------------- RAYMOND JAMES Page 10 of 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 183 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- MARKETING PROGRAM OVERVIEW -- PHASE II (CON'T) - -------------------------------------------------------------------------------- PRELIMINARY INDICATIONS OF INTEREST -- PHASE II All of the potential buyers who reviewed the Confidential Summary Information Memorandum were invited to submit preliminary indications of interest by Friday, June 18th. All potential buyers were contacted by Raymond James / Roney the week of June 14th. A total of 9 preliminary indications of interest were received by Tuesday, June 22nd. A summary review of the bidders and preliminary indications of interest is presented herein. Raymond James / Roney received Latona's preliminary indication of interest on August 13th, 1999, and thus they are included in the offer summary. CONCERNS RAISED BY POTENTIAL BUYERS WHO CHOSE NOT TO BID FOCUSED PRIMARILY ON AUTOMOTIVE CONCENTRATION, RECENT ACQUISITION ACTIVITY, AND STRATEGIC FIT. - -------------------------------------------------------------------------------- RAYMOND JAMES Page 11 of 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 184 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- PRELIMINARY INDICATIONS OF INTEREST SUMMARY -- PHASE II - -------------------------------------------------------------------------------- SUMMARY OF PRELIMINARY INDICATIONS OF INTEREST -- PHASE II ---------------------------------------------------------------------------- <TABLE> <CAPTION> IMPUTED OFFER PRICE COMPANY (per Share) STRUCTURE FINANCING COMMENTS - --------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> $18 - $22 Stock Combination of equity Manages two funds with over $775 and debt. million of equity under management. The funds are blind pools and, therefore, require only Board approval. $16 - $19 Stock Combination of equity Manages a $761 million equity fund. and debt. Wants to participate in consolidation strategy. $13 - $16 Stock 30% - 40% equity provided Would require recapitalization by and Management. structure. Current shareholder would Debt provided by be required to contribute at least . 10%. avoids the use of high yield debt. $19 - $22 Stock Senior Debt - $140 - $160 Recently acquired , Subordinated Debt - $40 - $50 for approximately 5x forecasted Equity -$55 - $75 EBITDA. $18 - $19 Stock Debt and Equity Wholly-owned subsidiary of which allows a longer investment horizon. Significant transaction experience. $20 Stock Debt and Equity is a part of , which most recently purchased . </TABLE> - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 12 of 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 185 PROJECT TITAN CONFIDENTIAL - ----------------------------------------------------------------------------- PRELIMINARY INDICATIONS OF INTEREST SUMMARY -- PHASE II - ----------------------------------------------------------------------------- SUMMARY OF PRELIMINARY INDICATIONS OF INTEREST -- PHASE II ------------------------------------------------------------------------ <TABLE> <CAPTION> IMPUTED OFFER PRICE COMPANY (per Share) STRUCTURE FINANCING COMMENTS - ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> $15 - $16 Stock , is a leading contract , manufacturer and supplier of complex high-yield debt underwriters precision metal parts. . $15 - $16 Stock , is a leading contract , manufacturer and supplier of complex high-yield debt underwriters precision metal parts. and . $15 Stock Cash or combination of cash Publicly traded company based in and Simpson stock. As of . In , acquired 12/31/98, had $64.5 million the credit available with for . Current debt to equity is .85 and a market cap of $180 million. $18 - $22 Stock includes in its portfolio. $14 - $15 Stock . Knowledge of automotive industry. Initial revolver and bridge loan on an interim basis until high yield market recovers. </TABLE> - ---------------------------------------------------------------------------- RAYMOND JAMES PAGE 13 OF 34 INVESTMENT BANKING - ---------------------------------------------------------------------------- <PAGE> 186 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- CONFIDENTIAL SUMMARY INFORMATION MEMORANDUMS SENT -- PHASE III - -------------------------------------------------------------------------------- REVISED INDICATIONS OF INTEREST -- PHASE III (AS OF JULY 27TH) All 9 parties that expressed interest in Phase II, in the form of a preliminary indication of interest, were invited to participate in Phase III, and received a copy of the Confidential Offering Memorandum. Raymond James / Roney requested that these parties submit revised indications of interest by Monday, July 19th. All potential buyers were contacted by Raymond James / Roney the weeks of July 5th and 12th. A total of 8 revised indications of interest were received by Tuesday, July 20th. A summary review of the bidders and preliminary and revised indications of interest is presented herein. The did not submit a revised indication of interest. Raymond James / Roney received word that there was a death in the family of the individual responsible for this transaction within their group, and that they would call us . Raymond James / Roney did not receive a phone call, and has left another message with this individual. The response has been very strong, and we received 9 indications of interest from prospective buyers at the completion of Phase II. Of those 9 parties, 8 submitted revised indications of interest, based upon their review of the Confidential Offering Memorandum, on Monday July 19th, 1999. is the only group that provided a preliminary indication of interest in Phase II, but did not submit a revised indication during Phase III. Supplemental Information: CALLED RAYMOND JAMES / RONEY ON JULY 28TH AND INDICATED THAT THEY WERE WILLING TO PAY $20.00 PER SHARE, AND WANTED TO PROCEED WITH THE PROCESS. Supplemental Information: CALLED RAYMOND JAMES / RONEY ON AUGUST 9TH AND INDICATED THAT THEY WANTED TO BE INCLUDED IN THE PROCESS. THEY SIGNED A CONFIDENTIALITY AGREEMENT ON AUGUST 10TH AND CAME BACK WITH AN INITIAL AND REVISED INDICATION OF INTEREST OF $20.00 ON AUGUST 13 AND AUGUST 19 RESPECTIVELY. - ------------------------------------------------------------------------------- RAYMOND JAMES PAGE 14 OF 34 INVESTMENT BANKING - ------------------------------------------------------------------------------- <PAGE> 187 PROJECT TITAN CONFIDENTIAL - ----------------------------------------------------------------------------- MARKETING PROGRAM OVERVIEW -- PHASE III - ----------------------------------------------------------------------------- Raymond James / Roney contacted a wide range of potential bidders including strategic buyers and financial investors. 88 parties were contacted and Confidential Summary Information Memorandums were sent to 39 (40 including Latona (Gentek)) of the 46 parties who responded. In addition, the Confidential Offering Memorandums were sent to all 9 parties (10 including Latona (Gentek)) that presented Phase II preliminary indications of interest. [THE CHART BELOW HAS BEEN UPDATED TO REFLECT THE INCLUSION OF LATONA ASSOCIATES (GENTEK) INTO THE PROCESS] [BAR GRAPH] <TABLE> <CAPTION> Financial Strategic --------- --------- <S> <C> <C> Phase I Confidentiality Agreements Sent 73 15 Phase I Condidentiality Agreements Received 40 6 Phase II Summary Memorandums Sent 34 6 Phase II Indications of Interest Received 8 2 Phase III Offering Memorandums Sent 8 2 Phase III Indications of Interest Received 7 2 </TABLE> - ---------------------------------------------------------------------------- RAYMOND JAMES PAGE 15 OF 34 INVESTMENT BANKING - ---------------------------------------------------------------------------- <PAGE> 188 PROJECT TITAN CONFIDENTIAL - ---------------------------------------------------------------------------- CONFIDENTIAL OFFERING MEMORANDUMS SENT -- PHASE III - ---------------------------------------------------------------------------- CONFIDENTIAL OFFERING MEMORANDUMS SENT (10) <TABLE> <CAPTION> FINANCIAL (8) Strategic(2) - ------------ ----------- <S> <C> <C> - - - - - - - - - - - - - - - - ---------------------------------------------------------------------------------------------------------------------------- LEGEND: - ------- - - Revised indication of interest submitted (9) - - No response (1) </TABLE> <TABLE> <CAPTION> SUMMARY OF REASONS FOR NOT SUBMITTING A REVISED INDICATION OF INTEREST / OTHER EXPLANATIONS - ---------------------------------------------------------------------------------------------------------------------------- COMPANY REASON FOR NOT SUBMITTING INDICATION OF INTEREST - ---------------------------------------------------------------------------------------------------------------------------- <S> <C> There was a death in the family of the principal responsible for the transaction, and he was supposed to contact us early in the week of . Raymond James / Roney received a call on indicating that they were interested in moving forward with a $20.00 per share price. sent an initial and revised indications of interest on August 13th and August 19th, respectively, at $20.00 per share and had a management presentation on August 26th, coupled with a data room visitation on August 25th. did not submit a best and final offer and has not returned phone calls from Raymond James / Roney. </TABLE> - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 16 OF 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 189 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- INDICATIONS OF INTEREST SUMMARY -- PHASE III - -------------------------------------------------------------------------------- SUMMARY OF INDICATIONS OF INTEREST -- PHASE III ---------------------------------------------------------------------------- <TABLE> <CAPTION> PHASE II PHASE III IMPUTED IMPUTED OFFER PRICE OFFER PRICE PHASE III COMPANY (per Share) (per Share) STRUCTURE FINANCING COMMENTS - --------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> $18 - $22 $21.50 - $23.50 Stock Purchase Combination of equity Manages two funds with over and debt. Utilize $775 million of equity under several sources for management. The funds are blind debt. pools and, therefore, require only Board approval. $16 - $19 $16.78 - $19.63 Stock Purchase Combination of equity Manages a $761 million equity and debt. DEBT PROVIDED fund. Wants to participate in BY consolidation strategy. BANK $13 - $16 $15.50 - $17.50 Stock Purchase 30% - 40% equity Would require recapitalization provided by structure. Current shareholder and Management. DEBT would be required to contribute PROVIDED BY at least 10%. . $19 - $22 $21.06 - $26.76 Stock Purchase Senior Debt/ Recently acquired Subordinated Debt/ for Equity would be approximately 5x forecasted utilized. NO HIGH EBITDA. YIELD DEBT IS THE DEBT PROVIDER $18 - $19 $18 - $19 Stock Purchase Debt and Equity Wholly-owned subsidiary of structure. DEBT which allows a longer TO BE PROVIDED BY investment horizon. Significant . transaction experience. $20 $20 Stock Purchase Debt and Equity is a part of provided by , which most and their current recently purchased debt source. Nothing specified. </TABLE> - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 17 of 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 190 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- INDICATIONS OF INTEREST SUMMARY -- PHASE III - -------------------------------------------------------------------------------- SUMMARY OF INDICATIONS OF INTEREST -- PHASE III - -------------------------------------------------------------------------------- <TABLE> <CAPTION> PHASE II PHASE III IMPUTED IMPUTED OFFER PRICE OFFER PRICE PHASE III PHASE III COMPANY (per Share) (per Share) STRUCTURE FINANCING COMMENTS - ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> $15 - $16 $15 - $16 Stock Purchase WILL NOT CHANGE THEIR OFFER PRICE OF $15-$16. high-yield debt underwriters Do not expect their offer IS READY TO to move above this range, PROVIDE THEM WITH A even after their due FINANCING COMMITMENT. diligence phase. If they are not competitive, they would like to know as soon as possible. $15 $16 Stock Purchase Proposed utilizing 60% CASH Publicly traded company and 40% STOCK based in . In which equates to $9.60 cash , acquired the and $6.40 stock. Valuation level assumes $118.5mm of long-term obligations. IS THEIR LEAD BANK. , . Current debt to equity is .85 and a market cap of $ million. STOCK IS TRADING AT $ PER SHARE WITH A P/E OF X AS OF JULY 19TH, 1999. $18 - $22 NO RESPONSE Stock Purchase IS includes ($20 - 7/28) THEIR LEAD BANK. in its portfolio. $14 - $15 $17 - $18 Stock Purchase . Purchase three Initial revolver and bridge after-market loan on an interim basis companies from until high yield market . recovers. </TABLE> - ------------------------------------------------------------------------------- RAYMOND JAMES Page 18 of 34 INVESTMENT BANKING - ------------------------------------------------------------------------------- <PAGE> 191 PROJECT TITAN CONFIDENTIAL - ------------------------------------------------------------------------------- INDICATIONS OF INTEREST SUMMARY -- BEST & FINAL OFFERS - ------------------------------------------------------------------------------- SUMMARY OF BEST & FINAL OFFERS - ------------------------------------------------------------------------------- <TABLE> <CAPTION> IMPLIED PRICE PER SHARE (1) ------------------------------------------------------------- 9/7/99 10/21/99 PHASE II PHASE III OFFER OFFER BEST & FINAL BEST & FINAL COMPANY RANGES RANGES OFFER OFFER (4) FINANCING COMMENTS - ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> <C> $18.00 - $22.00 $21.50 - $23.50 $17.64 Note 3 Did not discuss their financing plans, as requested by Raymond James / Roney in the bidding letter. $16.00 - $19.00 $16.78 - $19.63 $21.00 $18.75 $165mm of Senior wants Debt to be John Kennedy to provided by rollover $40mm and as of equity to the lead banks. partner with their $75mm of equity. $19.00 - $22.00 $21.06 - $26.76 $20.25 $18.00 Looked at a to combination of contribute $80mm High Yield Debt of equity and Senior Bank, capital and Debt or a combine ACAM Subordinated Debt with . May piece with Senior want/allow a Bank Debt. small piece of equity from John Kennedy $20.00 $20.00 Did Not Did Not Internal funds Did not submit Submit a Submit a plus available a best & final Final Offer Final Offer bank debt under offer. their current facilities. $14.00 - $15.00 $17.00 - $18.00 $20.50 $19.50 WP would receive John Kennedy (Expression 4.0 - 4.25x LTM would rollover of Interest) Adjusted EBITDA $44.0mm of his in debt from current equity , with $140mm interest in in the form of a Autocam, while Term Loan and the remaining amount would contri- as a revolver, bute $50mm with a maximum of equity amount of $190 capital. of debt. </TABLE> - ------------------------------------------------------------------------------- (1) Phase III and the Best & Final Offers dated September 7, 1999 assume $109,469 of net debt (debt minus cash) which is the amount shown on the balance sheet at June 30, 1999. The Best & Final Offers dated October 21, 1999 assume $105,626 of net debt which is the amount projected to be on the balance sheet at December 31, 1999. All of the Offers assume option proceeds (reduction of debt) of approximately $7.1 million based upon 703,511 options outstanding at an average exercise price of $10.06 per share. (2) came into the process in mid-August and submitted only Phase II and Phase III Indications of Interest, but did not submit a Best & Final Offer. (3) was not sent the updated financial figure, due to their initial bid and the lack of financing data surrounding their initial bid. (4) Revised Best and Final Offers were requested, based on the parties receiving the revised projections of 6/30/00 prepared by the Company on 10/11/99. - ------------------------------------------------------------------------------ RAYMOND JAMES PAGE 19 OF 34 INVESTMENT BANKING - ------------------------------------------------------------------------------ <PAGE> 192 RAYMOND JAMES 3 <PAGE> 193 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- VALUATION ANALYSIS - -------------------------------------------------------------------------------- RAYMOND JAMES INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 194 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- <TABLE> <CAPTION> ALTERNATIVE VALUATION METHODS EMPLOYED <S> <C> <C> Discounted Cash Flow Analysis DCF Issues - Present value of projected - Financial forecasts unlevered free cash flows developed by management "Inherent" value of businesses - Discount rate - Terminal value Comparable Company Compco Issues Valuation Reference Analysis Range - "Public" Market Value - Quality of comparables - Analysis weighted - Based upon Public Data toward DCF Analysis Based on trading value of - Compcos and Compaqs comparable companies relative do not internalize to appropriate benchmarks working capital issues Comparable Acquisition Compaq Issues Analysis - "Private" Market Valuation - Quality of comparables - Availability of data Values based on multiples paid - Consistency of Accounting for comparable companies in - Impacted by deal-specific acquisition transactions issues (i.e., synergies) </TABLE> - -------------------------------------------------------------------------------- RAYMOND JAMES Page 20 of 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 195 PROJECT TITAN CONFIDENTIAL - ---------------------------------------------------------------------------- AUTOCAM OPERATING PERFORMANCE & PROJECTIONS - ---------------------------------------------------------------------------- AUTOCAM OPERATING PERFORMANCE AND PROJECTIONS (DOLLARS IN MILLIONS) ------------------------------------------------------------------ ------------------------------------------------------------------ <TABLE> <CAPTION> RAYMOND AUTOCAM JAMES/RONEY AUTOCAM MANAGEMENT CONFIDENTIAL MANAGEMENT REVISIONS OFFERING PRESENTATION RECEIVED MEMORANDUM REVISIONS (2) 10/11/99 (3) ------------- -------------- ------------ <S> <C> <C> <C> REVENUES - -------- 1999PF $199.4 $199.4 $199.4 2000E 203.5 217.3 206.4 2001E n/a 243.7 243.7 2002E n/a 273.0 273.0 2003E n/a 288.0 288.0 2004E n/a 289.6 289.6 Adjusted EBITDA (1) - ------------------ 1999PF $36.5 $36.5 $36.5 2000E 49.7 49.7 46.8 2001E n/a 60.9 55.4 2002E n/a 69.9 62.4 2003E n/a 73.8 66.3 2004E n/a 74.2 66.7 Adjusted EBIT (1) - ------------------ 1999PF $21.2 $21.2 $21.2 2000E 32.6 32.6 30.6 2001E n/a 41.6 36.1 2002E n/a 48.0 40.5 2003E n/a 52.8 45.3 2004E n/a 53.2 45.6 </TABLE> (1) EBITDA and EBIT have been adjusted to reflect an addback of $964 for Public Company Expenses. (2) Adjusted EBITDA and Adjusted EBIT for 2003 and 2004 were derived by Raymond James / Roney & Co. using historical margins and applying them to ACAM forecasted sales figures for those years. (3) Adjusted EBITDA and Adjusted EBIT for 2002, 2003 and 2004 were derived by Raymond James / Roney & Co. using historical margins and applying them to ACAM forecasted sales figures for those years. - ---------------------------------------------------------------------------- RAYMOND JAMES PAGE 21 OF 34 INVESTMENT BANKING - ---------------------------------------------------------------------------- <PAGE> 196 PROJECT TITAN CONFIDENTIAL - ------------------------------------------------------------------------------- VALUATION SUMMARY OF AUTOCAM - ------------------------------------------------------------------------------- (DOLLARS IN MILLIONS) - ------------------------------------------------------------------------------- <TABLE> <CAPTION> TOTAL EQUITY EQUITY CONSIDERATION REFERENCE REFERENCE METHODOLOGY REFERENCE RANGE(2) RANGE(2) RANGE(2)/SHARE - ----------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> PROPOSED CONSIDERATION $230.0 $131.5 $18.75 DISCOUNTED CASH FLOW(3) $209.0 - $270.4 $105.7 - $167.1 $15.08 - $23.83 COMPARABLE COMPANIES - 1999PF $163.2 - $190.0 $64.7 - $91.5 $9.23 - $13.05 COMPARABLE COMPANIES - 2000E $206.7 - $238.6 $108.2 - $140.1 $15.43 - $19.98 COMPARABLE ACQUISITIONS - 1999PF $233.6 - $244.6 $135.1 - $146.1 $19.27 - $20.84 COMPARABLE ACQUISITIONS - 2000E $276.1 - $280.8 $177.6 - $182.3 $25.33 - $26.00 REFERENCE RANGE AVG. - 1999PF $201.9 - $235.0 $103.4 - $136.0 $14.75 - $19.47 REFERENCE RANGE AVG. - 2000E $230.6 - $263.3 $132.1 - $164.8 $18.84 - $23.50 LESS: NET DEBT(2) (98.5) - (98.5) - ------------------------------------------------------------------------------------------------------------------- EQUITY REFERENCE RANGE - 1999PF $103.4 - $136.0 $14.75 - $19.47 - ------------------------------------------------------------------------------------------------------------------- EQUITY REFERENCE RANGE - 2000E $132.1 - $164.8 $18.84 - $23.50 - ------------------------------------------------------------------------------------------------------------------- </TABLE> <TABLE> <CAPTION> TOTAL CONSIDERATION AS A TOTAL CONSIDERATION AS A MULTIPLE MULTIPLE OF 1999PF OF 2000E (1) ---------------------------------- ---------------------------------------- NET SALES EBITDA EBIT NET SALES EBITDA EBIT ($199.4) ($36.5) ($21.2) ($206.4) ($46.8) ($30.6) - ---------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> PROPOSED CONSIDERATION 1.2x 6.3x 10.8x 1.1x 4.9x 7.5x DISCOUNTED CASH FLOW(3) 1.0x-1.4x 5.7x-7.4x 9.9x-12.8x 1.0x-1.3x 4.5x-5.8x 6.8x-8.8x COMPARABLE COMPANIES - 1999PF 0.8x-0.9x 4.5x-5.2x 7.7x-8.9x COMPARABLE COMPANIES - 2000E 1.0x-1.1x 4.4x-5.0x 6.8x-7.7x COMPARABLE ACQUISITIONS - 1999PF 1.2x-1.2x 6.4x 6.7x 11.0x-11.5x COMPARABLE ACQUISITIONS - 2000E 1.4x-1.4x 5.9x-6.0 9.0x-9.2x ---------------------------------------------------------------------------------- REFERENCE RANGE AVG. - 1999PF 1.0x-1.2x 5.5x-6.4x 9.5x-11.1x ---------------------------------------------------------------------------------- REFERENCE RANGE AVG. - 2000E 1.1x-1.3x 4.9-5.6x 7.5x-8.6x ---------------------------------------------------------------------------------- LESS: NET DEBT(2) - ---------------------------------------------------------------------------------------------------------------------- EQUITY REFERENCE RANGE - 1999PF - ---------------------------------------------------------------------------------------------------------------------- EQUITY REFERENCE RANGE - 2000E - ---------------------------------------------------------------------------------------------------------------------- </TABLE> (1) Fiscal Year ended June 30; revised projections provided by Company management on 10/11/99. (2) Assumes forecasted net debt (debt less cash) of $105.6 million at 12/31/99 and option proceeds (703,551 options with an average exercise price of $10.06) of approximately $7.1 million as of 12/31/99 that would be a reduction of the debt. Based on information provided by Company management. Also assumes 7,010,544 total shares and options outstanding. (3) Assumes a terminal value multiple of 5.5x - 6.5x and a discount rate of 11.0%-15.0%. - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 22 OF 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 197 PROJECT TITAN CONFIDENTIAL - ------------------------------------------------------------------------------- DISCOUNTED CASH FLOW ANALYSIS - ------------------------------------------------------------------------------- The discounted cash flow analysis is based upon 2000-2003 forecasts provided by the management of Autocam and projections for FY 2004 were developed by Raymond James / Roney with assistance from Autocam's management. These forecasts were completed in May 1999 and subsequently updated in September, 1999. DISCOUNTED CASH FLOW ANALYSIS (DOLLARS IN MILLIONS) - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- <TABLE> <S> <C> <C> Total Consideration Reference Range $209.0 - $270.4 Equity Value Reference Range(1) $105.7 - $167.1 Per Share Value Reference Range(1) $15.08 - $23.83 Discount Rate 11.0% - 15.0% Terminal Value EBITDA Multiple 5.5x - 6.5x MULTIPLE OF FY 1999PF: Revenues $199.4 1.0x - 1.4x Adj. EBITDA $36.5 5.7X - 7.4x Adj. EBIT $21.2 9.9x - 12.8x MULTIPLE OF FY 2000E:(2) Revenues $206.4 1.0x - 1.3x Adj. EBITDA $46.8 4.5X - 5.8x Adj. EBIT $30.6 6.8X - 8.8x - ---------------------------------------------------------------------- </TABLE> (1) Utilizes net debt (debt less cash) of $110.4 million at 6/30/99 and option proceeds (703,551 options with an average exercise price of $10.06) of approximately $7.1 million as of 6/30/99 that would be a reduction of the debt. Based on information provided by Company management. Also assumes 7,010,544 total shares and options outstanding. (2) Revised projections were provided by Autocam's management on 10/11/99 plus public company adjustments of $964,000. - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 23 OF 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 198 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- COMPARABLE COMPANY ANALYSIS - -------------------------------------------------------------------------------- As comparable public companies, publicly traded companies within the same industry with operations and customer base similar to Autocam (primarily suppliers to Tier I and big three automotive manufacturers) were chosen. COMPARABLE COMPANIES VALUATION SUMMARY (DOLLARS IN MILLIONS) - -------------------------------------------------------------------------------- <TABLE> <CAPTION> IMPLIED TOTAL IMPLIED EQUITY IMPLIED EQUITY COMPANY MULTIPLE CONSIDERATION REFERENCE REFERENCE DATA RANGE(1) REFERENCE RANGE RANGE(2) RANGE(2)/SHARE ------- -------- --------------- -------------- -------------- <S> <C> <C> <C> <C> <C> 1999PF Sales $199.4 0.7x - 0.9x $139.6 - $179.5 $41.1 - $81.0 $5.86 - $11.55 1999PF Adj. EBITDA $36.5 5.0 - 5.7 182.5 - 208.1 84.0 - 109.6 $11.98 - $15.63 1999PF Adj. EBIT $21.2 7.9 - 8.6 167.5 - 182.3 69.0 - 83.8 $9.84 - $11.95 2000E Sales(3) $206.4 0.7x - 0.9x 144.5 - 185.8 46.0 - 87.3 $6.56 - $12.45 2000E Adj. EBITDA(3) $46.8 5.0 - 5.7 234.0 - 266.8 135.5 - 168.3 $19.32 - $24.01 2000E Adj. EBIT(3) $30.6 7-9 - 8.6 241.7 - 263.2 143.2 - 164.7 $20.43 - $23.49 - ---------------------------------------------------------------------------------------------------- Reference Range: (1999PF Average) $163.2 $190.0 $64.7 $91.5 $9.23 - $13.05 Reference Range: (2000E Average) $206.7 $238.6 $108.2 $140.1 $15.43 - $19.98 - ---------------------------------------------------------------------------------------------------- </TABLE> (1) Multiple Range consists of the Median and the Mean. (2) Assumes forecasted net debt (debt less cash) of $105.6 million at 12/31/99 and option proceeds (703,551 options with an average exercise price of $10.06) of approximately $7.1 million as of 12/31/99 that would be a reduction of the debt. Based on information provided by Company management. Also assumes 7,010,544 total shares and options outstanding. (3) Revised projections were provided by Autocam's management on 10/11/99. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 24 of 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 199 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- COMPARABLE ACQUISITIONS ANALYSIS - -------------------------------------------------------------------------------- <TABLE> <CAPTION> SUMMARY OF COMPARABLE ACQUISITIONS ANALYSIS (DOLLARS IN MILLIONS) ================================================================================================================ IMPLIED TOTAL IMPLIED EQUITY COMPANY CONSIDERATION REFERENCE IMPLIED EQUITY REFERENCE DATA MULTIPLE RANGE(1) RANGE REFERENCE RANGE(2) RANGE(2)/SHARE - ---------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> 1999PF Sales $199.4 n/a -- n/a n/a -- n/a n/a -- n/a n/a 1999PF EBITDA $36.5 6.4 -- 6.7 233.6 -- 244.6 135.1 -- 146.1 $19.26 - $20.84 1999PF EBIT $20.4 n/a -- n/a n/a -- n/a n/a -- n/a n/a 2000E Sales (3) $206.4 n/a -- n/a n/a -- n/a n/a -- n/a n/a 2000E EBITDA (3) $46.8 5.9 -- 6.0 276.1 -- 280.8 177.6 -- 182.3 $25.33 - $26.00 2000E EBIT (3) $30.6 n/a -- n/a n/a -- n/a n/a -- n/a n/a - ---------------------------------------------------------------------------------------------------------------- Reference Range: (1999PF/2000E Average) $254.9 $262.7 $156.4 $164.2 $22.30 -- $23.42 - ---------------------------------------------------------------------------------------------------------------- NOTE: Citation/Kelso Transaction had revised multiples of 6.0x and 5.0x historical and forecasted EBITDA respectively. These figures translate into Total Consideration of $228.6mm ($18.55/share) based on the LTM EBITDA (9/30/99) of #38.1mm, and Total Consideration of $234.0mm ($19.32/share) based on the revised Adjusted EBITDA of $46.8mm for FYE 6/30/00. (1) Multiple Range consists of Median and the Mean. (2) Assumes forecasted net debt (debt less cash) of $105.6 million at 12/31/99 and option proceeds (703,551 options with an average exercise price of $10.06) of approximately $7.1 million as of 12/31/99 that would be a reduction of the debt. Based on information provided by Company management. Also assumes 7,010,544 total shares and options outstanding. (3) Revised projections were provided by Autocam's management on 10/11/99 - ---------------------------------------------------------------------------------------------------------------- </TABLE> - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 25 OF 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 200 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- SUMMARY OF COMPARABLE COMPANIES - -------------------------------------------------------------------------------- SELECTED COMPARABLE COMPANIES -- 1999E RESULTS (DOLLARS IN MILLIONS) - -------------------------------------------------------------------------------- <TABLE> <CAPTION> - --------------------------------------------------------------------------------------------------------------------------------- TOTAL CONSIDERATION LTM RESULTS MARGINS AS A MULTIPLE OF: ----------------------------------------------------------- EQUITY NET TOTAL VALUE DEBT CONSIDERATION SALES EBITDA EBIT EBITDA EBIT SALES EBITDA EBIT - ---------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> Arvin Industries, Inc. (ARV) $682.8 $531.9 $1,214.7 $2,839.7 $275.4 $172.2 9.7% 6.1% 0.4x 4.4x 7.1x Dana Corporation (DCN) 4,578.6 3,707.9 8,286.5 12,782.4 1,509.6 986.8 11.8 7.7 0.6 5.5 8.4 Donnelly Corporation 79.8 115.9 195.7 871.6 41.9 17.8 4.8 2.0 0.2 4.7 11.0 Dura Automotive 249.7 668.7 918.5 1,376.2 183.2 132.7 13.3 9.6 0.7 5.0 6.9 Gentex Corporation 1,258.3 (117.4) 1,140.8 246.5 88.7 80.7 36.0 32.8 4.6 12.9 14.1 Gencorp, Inc. 472.8 351.0 823.8 1,894.1 230.2 171.7 12.2 9.0 0.4 3.6 4.8 Intermet Corporation 269.4 199.4 468.8 888.6 116.0 79.9 13.1 9.0 0.5 4.0 5.9 Lamson & Sessions Co. 68.1 49.2 117.3 276.6 19.5 10.1 7.1 3.6 0.4 6.0 11.6 Lear Corporation 2,155.0 3,318.9 5,473.9 10,773.1 799.4 536.1 7.4 5.0 0.5 6.8 10.2 Mascotech, Inc. 658.9 1,280.0 1,938.9 1,686.4 n/a 218.2 n/a 12.9 1.1 n/a 8.9 Modine Manufacturing 697.6 175.5 873 1,222.2 154.9 110.7 13.8 9.9 0.8 5.6 7.9 Shiloh Industries, Inc. 137.3 146.6 284 314.6 40.5 23.6 12.9 7.5 0.9 7.0 12.0 Simpson Industries, Inc. (SMPS) 183.6 99.4 283 514.7 63.9 37.0 12.4 7.2 0.5 4.4 7.6 Superior Industries Intl. (SUP) 707.6 (93.9) 613.7 556.9 121.7 95.0 21.9 17.1 1.1 5.0 6.5 Tower Automotive (TWR) 728.2 573.6 1,301.7 1,942.7 297.4 202.5 15.3 10.4 0.7 4.4 6.4 HIGH 36.0% 32.8% 4.6x 12.9x 14.1x AVERAGE 13.7 10.0 0.9 5.7 8.6 MEDIAN 12.6 9.0 0.6 5.0 7.9 LOW 4.8 2.0 0.2 3.6 4.8 - ---------------------------------------------------------------------------------------------------------------------------------- Source: Bloomberg News, Zaks Earnings Estimates & Equity Research Reports. </TABLE> - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 26 of 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 201 PROJECT TITAN CONFIDENTIAL - -------------------------------------------------------------------------------- SUMMARY OF COMPARABLE ACQUISITIONS - -------------------------------------------------------------------------------- SUMMARY OF COMPARABLE ACQUISITIONS ANALYSIS - FORECASTED ANALYSIS (DOLLARS IN MILLIONS) ----------------------------------------------------------------- <TABLE> <CAPTION> TC AS A MULTIPLE OF ------------------- TRANSACTION DATE TARGET/ACQUIROR TOTAL FORECASTED FORECASTED CONSIDERATION SALES EBITDA - ----------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> 8/01/99 Varlen Corporation/Amsted Industries, Inc. $790 1.1x 6.5x 7/27/99 Standard Products Co./Cooper Tire & Rubber Co. (PENDING) 757 0.7x 6.0x 6/24/99 Citation Corporation/Kelso & Co. (PENDING) 620 0.7x 5.0x 6/18/99 Durakon Industries/Littlejohn & Co. LLC 84 0.4x 4.2x 6/17/99 Walbro Corp./TI Group 630 0.8x 5.3x 4/27/99 Hilite Industries, Inc./Carreras Kestner & Co LLC 85 0.9x 5.6x 2/12/99 Colfor Manufacturing/American Axle & Manufacturing Co. 168 1.2x 7.0x 1/28/99 Lucas Varity, plc/TRW, Inc. 6,613 0.9x 7.4x 1/26/99 Adwest Automotive PLC/Dura Automotive Systems 330 0.8x 6.2x 1/07/99 Defiance, Inc./General Chemical Group, Inc. 73 0.7x 4.6x 12/08/98 Hi-Stat/Stoneridge 362 2.0x 6.8x 11/20/98 CMI International/Hayes Lemmerz International 605 0.9x 6.1x High 2.0x 7.4x Median 0.9x 5.9x Mean 0.9x 6.0x Low 0.4x 4.2x - ----------------------------------------------------------------------------------------------------------------- Source: Transaction Filings </TABLE> - -------------------------------------------------------------------------------- RAYMOND JAMES PAGE 27 OF 34 INVESTMENT BANKING - -------------------------------------------------------------------------------- <PAGE> 202 PROJECT TITAN CONFIDENTIAL - ------------------------------------------------------------------------------- SUMMARY OF COMPARABLE ACQUISITIONS - ------------------------------------------------------------------------------- SUMMARY OF COMPARABLE ACQUISITIONS ANALYSIS - HISTORICAL ANALYSIS (DOLLARS IN MILLIONS) - ------------------------------------------------------------------------------- <TABLE> <CAPTION> TC AS A MULTIPLE OF LTM TOTAL ----------- TRANSACTION DATE TARGET/ACQUIROR CONSIDERATION EBITDA - ---------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> 7/27/99 Standard Products Co./Cooper Tire & Rubber CO. (PENDING) 757 6.4x 6/24/99 Citation Corporation/Kelso & Co. (PENDING) 620 6.2x 6/18/99 Durakon Industries/Littlejohn & Co. LLC 84 4.8X 6/17/99 Walbro/TI Group 630 7.1x 4/27/99 Hilite Industries, Inc./Carreras Kestner & Co LLC 85 6.1x 4/99 Varlen Corporation/Amstead Industries 785 7.5x 1/28/99 Lucas Varity plc/TRW, Inc. 6,613 6.8x 1/26/99 Adwest Automotive PLC/Dura Automotive Systems 330 5.9x 1/07/99 Defiance, Inc./General Chemical Group, Inc. 73 4.9x 12/98 Kuhlman Corporation/Borg-Warner Automotive 789 5.9x 12/08/98 Hi-Stat/Stoneridge 362 11.8x 11/20/98 CMI International/Hayes Lemmerz International 605 6.9x 08/98 Cooper Automotive/Federal Mogul Corporation 1,900 6.6x -------------------------- High 11.8x Median 6.4x Mean 6.7x Low 4.8x -------------------------- </TABLE> - ------------------------------------------------------------------------------- Source: Transaction Filings - ------------------------------------------------------------------------------- RAYMOND JAMES PAGE 28 OF 34 INVESTMENT BANKING - ------------------------------------------------------------------------------- <PAGE> 203 RAYMOND JAMES 4 <PAGE> 204 PROJECT TITAN CONFIDENTIAL - ---------------------------------------------------------------------------- STOCK PREMIUM ANALYSIS - ---------------------------------------------------------------------------- RAYMOND JAMES INVESTMENT BANKING - ---------------------------------------------------------------------------- <PAGE> 205 PROJECT TITAN CONFIDENTIAL AUTOCAM CORPORATION STOCK PREMIUM ANALYSIS SUMMARY AS OF SEPTEMBER 14, 1999 [AUTOCAM CORPORATION BAR GRAPH] <TABLE> <CAPTION> Average ACAM Stock Price Average ACAM Offer Price Average ACAM Premium ------------------------ ------------------------ -------------------- <S> <C> <C> Last 10 Days $13.39 $18.75 40.0% Last 30 Days $13.27 $18.75 41.3% Last 90 Days $12.70 $18.75 47.6% Last 180 Days $12.05 $18.75 55.6% </TABLE> RAYMOND JAMES PAGE 29 OF 34 INVESTMENT BANKING <PAGE> 206 PROJECT TITAN CONFIDENTIAL - ---------------------------------------------------------------------------- AUTOCAM CORPORATION STOCK PREMIUM ANALYSIS LAST 10 DAYS AS OF SEPTEMBER 14, 1999 [STOCK PREMIUM ANALYSIS GRAPH] RAYMOND JAMES PAGE 30 OF 34 INVESTMENT BANKING <PAGE> 207 PROJECT TITAN CONFIDENTIAL - ---------------------------------------------------------------------------- AUTOCAM CORPORATION STOCK PREMIUM ANALYSIS LAST 30 DAYS AS OF SEPTEMBER 14, 1999 [STOCK PREMIUM ANALYSIS GRAPH] RAYMOND JAMES PAGE 31 OF 34 INVESTMENT BANKING <PAGE> 208 PROJECT TITAN CONFIDENTIAL - ---------------------------------------------------------------------------- AUTOCAM CORPORATION STOCK PREMIUM ANALYSIS LAST 90 DAYS AS OF SEPTEMBER 14, 1999 [STOCK PREMIUM ANALYSIS GRAPH] RAYMOND JAMES PAGE 32 OF 34 INVESTMENT BANKING <PAGE> 209 PROJECT TITAN CONFIDENTIAL - ---------------------------------------------------------------------------- AUTOCAM CORPORATION STOCK PREMIUM ANALYSIS LAST 180 DAYS AS OF SEPTEMBER 14, 1999 [STOCK PREMIUM ANALYSIS GRAPH] RAYMOND JAMES PAGE 33 OF 34 INVESTMENT BANKING <PAGE> 210 PROJECT TITAN CONFIDENTIAL - ---------------------------------------------------------------------------- AUTOCAM CORPORATION STOCK PRICE -- DOW JONES INDUSTRIAL AVERAGE COMPARISON SINCE IPO DATE -- 10/31/91 [DOW JONES INDUSTRIAL AVERAGE COMPARISON GRAPH] RAYMOND JAMES PAGE 34 OF 34 INVESTMENT BANKING <PAGE> 211 - -------------------------------------------------------------------------------- RECENT STOCK PERFORMANCE FOR SELECTED COMPARABLE COMPANIES - -------------------------------------------------------------------------------- <TABLE> <CAPTION> 9/1/99 10/5/99 10/20/99 10/27/99 HEAD STOCK STOCK STOCK STOCK COMPANY QUARTERS PRICE PRICE PRICE PRICE - -------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> COMPARABLE AUTOMOTIVE COMPANIES Autocam Corporation (ACAM) MI $13.00 $15.88 22.1% $11.63 -10.6% $10.63 -18.3% Arvin Industries, Inc. (ARV) IN $35.50 $30.63 -13.7% $25.94 -26.9% $25.69 -27.6% Dana Corporation (DCN) OH $42.75 $37.88 -11.4% $27.81 -34.9% $28.00 -34.5% Donnely Corporation (DON) MI $16.19 $14.19 -12.4% $14.25 -12.0% $13.44 -17.0% Dura Automotive Systems (DRRA) MN $25.94 $23.94 -7.7% $18.44 -28.9% $18.13 -30.1% Gentex Corporation (GNTX) MI $20.63 $20.50 -0.6% $17.84 -13.5% $16.94 -17.9% Gencorp, Inc. (GY) OH $20.02 $10.88 -45.7% $11.00 -45.1% $11.50 -42.6% Intermet Corporation (INMT) MI $11.81 $ 9.75 -17.5% $10.00 -15.3% $10.88 -7.9% The Lamson & Sessions Company (LMS) OH $ 5.25 $ 5.25 0.0% $ 4.75 -9.5% $ 4.81 -8.3% Lear Corporation (LEA) MI $40.69 $35.13 -13.7% $32.50 -20.1% $32.56 -20.0% Mascotech, Inc. (MSX) MI $16.81 $16.69 -0.7% $14.31 -14.9% $14.81 -11.9% Modine Manufacturing Company (MODI) WI $29.59 $23.75 -19.7% $24.03 -18.8% $23.50 -20.6% Shiloh Industries, Inc. (SHLO) DE $12.00 $11.38 -5.2% $10.50 -12.5% $ 9.13 -24.0% Simpson Industries, Inc. (SMPS) MI $12.19 $11.38 -6.7% $10.06 -17.4% $10.19 -16.4% Superior Industries International (SUP) CA $27.88 $28.69 2.9% $26.69 -4.3% $26.38 -5.4% Tower Automotive, Inc. (TWR) MN $20.38 $19.88 -2.5% $16.31 -19.9% $15.94 -21.8% Average Increase/(Decrease) from 9/1/99 -8.3% -19.0% -20.3% Average Increase/(Decrease) from 9/1/99 (Excluding ACAM) -10.3% -19.6% -20.4% </TABLE> <PAGE> 212 RAYMOND JAMES B <PAGE> 213 PROJECT TITAN ALTERNATIVE INVESTMENT ANALYSIS <TABLE> <CAPTION> Oct-99 1 Year 2 Year 3 Year 4 Year 5 Year 10 Year $18.5 $18.75 $19.0 ------ ------ ------ ------ ------ ------ ------- ----- ------ ----- <S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> Dow Jones Industrial 10,470.3 8.592.1 7,442.1 6,029.4 4,755.5 3,908.1 2,645.1 LTM EBITDA as of 9/30/99 $38.1 $38.1 $38.1 CAGR 21.9% 40.7% 31.8% 30.1% 27.9% 16.5% Enterprise Value $233.0 $234.8 $236.5 S&P 500 1,301.7 1,098.7 914.6 705.3 581.5 472.4 340.4 --------------------- CAGR 18.5% 42.3% 35.9% 30.8% 28.8% 16.1% EBITDA Multiple 6.1x 6.2x 6.2x Average CAGR 20.2% 41.5% 33.8% 30.5% 28.4% 16.3% </TABLE> <TABLE> <CAPTION> Estimated Estimated Required MATRIX Stock Price(1) EBITDA Multiple 4.5x 5.0x 5.5x 6.0x 6.5x 7.0x 7.5x ----------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> Year 2000 10.3% $20.7 $46.0 5.4x $55.2 $49.7 $45.1 $41.4 $38.2 $35.5 $33.1 12.3% $21.1 $46.0 5.5x $55.8 $50.2 $45.6 $41.8 $38.6 $35.8 $33.5 14.3% $21.4 $46.0 5.5x $56.3 $50.7 $46.1 $42.3 $39.0 $36.2 $33.8 16.3% $21.8 $46.0 5.6x $56.9 $51.2 $46.6 $42.7 $39.4 $36.6 $34.2 18.3% $22.2 $46.0 5.6x $57.5 $51.8 $47.1 $43.1 $39.8 $37.0 $34.5 20.3% $22.6 $46.0 5.7x $58.1 $52.3 $47.5 $43.6 $40.2 $37.3 $34.9 22.3% $22.9 $46.0 5.7x $58.7 $52.8 $48.0 $44.0 $40.6 $37.7 $35.2 24.3% $23.3 $46.0 5.8x $59.3 $53.3 $48.5 $44.4 $41.0 $38.1 $35.6 26.3% $23.7 $46.0 5.9x $59.9 $53.9 $49.0 $44.9 $41.4 $38.5 $35.9 </TABLE> <TABLE> <CAPTION> Estimated Estimated Required MATRIX Stock Price(1) EBITDA Multiple 4.5x 5.0x 5.5x 6.0x 6.5x 7.0x 7.5x ----------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> Year 2001 10.3% $22.8 $53.0 5.0x $58.5 $52.6 $47.9 $43.9 $40.5 $37.6 $35.1 12.3% $23.6 $53.0 5.1x $59.8 $53.8 $48.9 $44.8 $41.4 $38.4 $35.9 14.3% $24.5 $53.0 5.2x $61.1 $55.0 $50.0 $45.8 $42.3 $39.3 $36.7 16.3% $25.4 $53.0 5.3x $62.5 $56.2 $51.1 $46.8 $43.2 $40.2 $37.5 18.3% $26.2 $53.0 5.4x $63.8 $57.5 $52.2 $47.9 $44.2 $41.0 $38.3 20.3% $27.1 $53.0 5.5x $65.2 $58.7 $53.4 $48.9 $45.2 $41.9 $39.1 22.3% $28.0 $53.0 5.7x $66.6 $60.0 $54.5 $50.0 $46.1 $42.8 $40.0 24.3% $29.0 $53.0 5.8x $68.1 $61.3 $55.7 $51.1 $47.1 $43.8 $40.9 26.3% $29.9 $53.0 5.9x $69.6 $62.6 $56.9 $52.2 $48.2 $44.7 $41.7 </TABLE> <TABLE> <CAPTION> Estimated Estimated Required MATRIX Stock Price(1) EBITDA Multiple 4.5x 5.0x 5.5x 6.0x 6.5x 7.0x 7.5x ----------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> Year 2002 10.3% $25.2 $60.0 4.7x $62.2 $55.9 $50.9 $46.6 $43.0 $40.0 $37.3 12.3% $26.6 $60.0 4.8x $64.3 $57.6 $52.6 $48.2 $44.5 $41.4 $38.6 14.3% $28.0 $60.0 5.0x $66.6 $59.9 $54.5 $49.9 $46.1 $42.8 $39.9 16.3% $29.5 $60.0 5.2x $68.9 $62.0 $56.4 $51.7 $47.7 $44.3 $41.3 18.3% $31.0 $60.0 5.3x $71.3 $64.2 $58.3 $53.5 $49.4 $45.8 $42.8 20.3% $32.6 $60.0 5.5x $73.8 $66.4 $60.4 $55.4 $51.1 $47.4 $44.3 22.3% $34.3 $60.0 5.7x $76.4 $68.7 $62.5 $57.3 $52.9 $49.1 $45.8 24.3% $36.0 $60.0 5.9x $79.1 $71.1 $64.7 $59.3 $54.7 $50.8 $47.4 26.3% $37.8 $60.0 6.1x $81.8 $73.6 $66.9 $61.4 $56.6 $52.6 $49.1 </TABLE> (1)Based upon $18.75 offer price and net debt of $103.3. <PAGE> 214 RAYMOND JAMES C <PAGE> 215 OCTOBER 27, 1999, 4:35 PM PROJECT TITAN TRANSACTION TIMELINE (APPROXIMATE) - ------------------------------------------------------------------------------- [TRANSACTION TIMELINE CALENDAR] [OCTOBER 28, 1999] [NOVEMBER 5, 1999] [JANUARY 3, 2000] [FEBRUARY 8, 2000] KEY DEADLINES <TABLE> <CAPTION> DATE ITEM OF IMPORTANCE RESPONSIBILITY - ---- ------------------ -------------- <S> <C> <C> SEPT 15-19 Ernst & Young ("E & Y") in Grand Rapids to complete due diligence SEPT 16 Merger Agreement ("MA") received by Dickinson Wright ("DW") from Gibson Dunn ("GD") SEPT 16-24 Complete disclosure schedules for MA SEPT 17 ACAM team to review mechanical issues of MA AND submit comments to GD SEPT 20 All hands meeting in Chicago to discuss business/other issues of MA SEPT 20-22 EY in France and Brazil SEPT 21-23 JK in France at F&P board meeting SEPT 23-25 Financing commitment received by Aurora SEPT 24 All hands meeting to discuss final business/other issues of MA SEPT 24 Special Committee Meeting in Grand Rapids OCT 28 BOARD OF DIRECTORS MEETING - TO UPDATE AND DECIDE ON APPROVAL OF THE TRANSACTION OCT 29 Regular date for ACAM Earnings Release NOV 5 MERGER AGREEMENT EXECUTED / PUBLIC ANNOUNCEMENT NOV 8 HSR Filing and EEC Filing if required NOV 9 File appropriate documents with SEC (Proxy/Merger Agreement/8K....etc) NOV 19 Receive word from SEC on review vs. no review DEC 22 Receive SEC comments DEC 28 Respond to SEC comments JAN 3 SEC EFFECTIVE JAN 5 Provide notice of shareholders meeting FEB 7 Shareholders meeting / Approval date FEB 8 CLOSING OF THE TRANSACTION </TABLE> - ------------------------------------------------------------------------------- RAYMOND JAMES INVESTMENT BANKING - ------------------------------------------------------------------------------- </TEXT> </DOCUMENT> </SEC-DOCUMENT> -----END PRIVACY-ENHANCED MESSAGE-----