Oilgear Completes Sale of Leeds, England Facility; Sale generates $5 million gain; company to repay Barclays Bank debt
June 07 2006 - 12:20PM
Business Wire
The Oilgear Company (Nasdaq/NMS:OLGR) today announced it has
completed the sale of its manufacturing facility in Leeds, England,
for 4,150,000 British pounds Sterling (approximately $7.7 million).
David A. Zuege, president and chief executive officer of Oilgear,
said the company will use the proceeds from the sale to repay a
loan from Barclays Bank of 3.2 million pounds (approximately $6.0
million) related to the financing of the facility. Additional uses
of the proceeds include funding moving expenses, leasehold
improvements and equipment for its new leased location in Leeds and
payment of capital gains taxes. The company expects to report a
gain, net of all costs, expenses, taxes and fees of approximately
$5 million on the transaction. "We have successfully completed the
move from the former location into our new leased facility in
Leeds. The new facility will enable us to serve our customers in
the United Kingdom and Europe more efficiently and effectively. The
European market is an important segment of our business and we look
forward to further strengthening our presence in this geographic
region," said Zuege. Oilgear has approximately 90 employees at the
Leeds location. A leader in the fluid power industry, The Oilgear
Company provides advanced technology in the design and production
of unique fluid power components and electronic controls. The
company serves customers in the primary metals, machine tool,
automobile, petroleum, construction equipment, chemical, plastic,
glass, lumber, rubber and food industries. Its products are sold as
individual components or integrated into high performance
applications. Certain matters discussed in this press release are
"forward-looking statements" intended to qualify for the safe
harbors from liability established by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
generally be identified as such because the context of the
statement will include words such as the Company "believes,"
"anticipates," "expects" or words of similar import. Similarly,
statements that describe the Company's future plans, objectives or
goals are also forward-looking statements. Such forward-looking
statements are subject to certain risks and uncertainties which
could cause actual results to differ materially from those
currently anticipated. In addition to the assumptions and other
factors referenced specifically in connection with such statements,
the following could impact the business and financial prospects of
the Company: factors affecting the economy generally, including the
financial and business conditions of the Company's customers, the
demand for customers' products and services that utilize the
Company's products, and national and international events; factors
affecting the Company's financial performance or condition,
including restrictions or conditions imposed by current or
prospective lenders, tax legislation, and changes in accounting
principles; factors affecting percentage of completion contracts,
including the accuracy of estimates and assumptions regarding the
timing and levels of costs to complete those contracts; factors
affecting the Company's international operations, including
fluctuations in currencies, changes in laws and political or
financial insecurity of foreign governments; factors affecting the
Company's ability to complete the move from its Leeds, England,
facility; hire and retain competent employees, including
unionization of non-union employees and strikes or work stoppages;
any further decrease in stock price as a result of market
conditions; changes in the law or standards applicable to the
Company, including environmental laws and accounting
pronouncements; availability of raw materials; unanticipated
technological developments that result in competitive disadvantages
and may impair existing assets; and factors set forth in the
Company's periodic reports filed with the SEC in accordance with
the Securities Exchange Act. Shareholders, potential investors and
other readers are urged to consider these factors and those set
forth in the Company's filings with the SEC carefully in evaluating
the forward-looking statements. The forward-looking statements made
herein are only made as of the date of this press release and the
Company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or
circumstances.
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