Reinhold Industries Enters Into Definitive Agreement to Sell NP Aerospace Subsidiary
September 26 2005 - 3:55PM
PR Newswire (US)
SANTA FE SPRINGS, Calif., Sept. 26 /PRNewswire-FirstCall/ --
Reinhold Industries, Inc. (NASDAQ:RNHDA) of Santa Fe Springs,
California, today announced that it had entered into a definitive
agreement to sell its U.K. based subsidiary, NP Aerospace Ltd., to
The Carlyle Group for 30 million British Pounds Sterling ($53.4
million based on the current exchange rate of 1.78). After a
thorough review of the company's strategic alternatives with
respect to NP Aerospace, the Board of Directors unanimously
approved the definitive agreement and recommends that the company's
shareholders vote in favor of the transaction at a special meeting
to be held for such purpose. "We are fortunate to be working with
an acquirer with the financial means and global presence such as
Carlyle," said Ralph R. Whitney, Jr., Chairman of the Board of
Reinhold. "We expect that the foundation of business created during
Reinhold's ownership of NP Aerospace will support Carlyle's going
forward strategy while providing a significant return to our
shareholders." Michael T. Furry, Reinhold's President and CEO
commented: "The sale of NP Aerospace will enable Reinhold to focus
on its domestic aerospace, aircraft seating and commercial molding
businesses. This divestiture will enable us to operate more
efficiently by reducing the company's operating expenses." Reinhold
intends to use up to approximately $25,000,000 of the net proceeds
from the sale of NP Aerospace to repay all or substantially all of
its outstanding senior indebtedness. Reinhold's board of directors
will consider a number of alternatives for the use of the balance
of the net proceeds. Because Reinhold will be a smaller company
after the sale of NP Aerospace, Reinhold's board will also review
its regular dividend policy. Reinhold Industries, Inc. is a
manufacturer of advanced custom composite components and sheet
molding compounds for a variety of applications in the United
States and Europe. Special Note Regarding Forward-Looking
Statements To the extent the Company makes certain "forward-looking
statements" in this press release, such as statements about future
plans, goals and other events which have not yet occurred, such
statements are intended to qualify for the safe harbors from
liability provided by the Private Securities Litigation Reform Act
of 1995. Forward-looking statements can generally be identified
because they include words such as the Company "believes,"
"anticipates," "expects" or words of similar import. These
forward-looking statements involve risks and uncertainties and the
actual results could differ materially from those discussed in the
forward-looking statements. These risks and uncertainties include,
without limitation, risks associated with levels of U.S. and
foreign military spending, currency fluctuations and the financial
condition of the airline industry. You should consider these risks
and factors and the impact they may have when you evaluate these
forward-looking statements. These statements are based only on the
Company's knowledge and expectations on the date of this press
release. The Company disclaims any duty to update these statements
or other information in this press release based on future events
or circumstances. DATASOURCE: Reinhold Industries, Inc. CONTACT:
Wanda Morrison of Reinhold Industries, Inc., +1-562-944-3281
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