- Divestiture supports continued simplification of portfolio
- Enables greater focus on larger businesses and fast growth end
market opportunities
- Proceeds to be used towards organic and inorganic initiatives
and returning capital to shareholders
SALEM,
N.H., Feb. 2, 2023 /PRNewswire/ -- Standex
International Corporation (NYSE:SXI) announced today that it
previously signed an agreement to sell its Procon Pumps business to
Investindustrial, a leading European investment and advisory group,
at an enterprise value of $75
million, subject to customary post-closing adjustments. The
transaction is expected to close during the month of February. The
Procon business was previously part of the Specialty Solutions
segment. In fiscal year 2022, Procon's net revenues were
$33.7 million.
"After a thorough competitive process, we are pleased to
announce the sale of our Procon business to Investindustrial," said
Standex President & CEO David
Dunbar. "Investindustrial's portfolio of companies includes
the CEME Group, which manufactures solenoid pumps, rotary pumps,
and solenoid valves in Italy and
across the globe. We believe CEME Group is well-placed to
enable the Procon business to grow and reach its strategic
potential. I would like to thank our Procon colleagues for their
contributions to Standex and wish them much success as they start a
new chapter for the business."
Standex intends to use the proceeds from the sale in accordance
with its current capital allocation framework, comprised of organic
growth opportunities, inorganic initiatives, and returning capital
to shareholders.
About Investindustrial and CEME Group
Founded in 1990, Investindustrial is a leading European
investment and advisory group with over €12 billion of raised fund
capital. It provides industrial solutions and capital to
high-quality mid-market companies. Among its portfolio of companies
is CEME Group, which manufactures solenoid pumps, rotary pumps, and
solenoid valves in Italy and
across the globe. CEME Group is known for its technical engineering
know-how, quality, flexibility and for its unique ability to
develop innovative solutions for customers in Italy and other international markets.
About Procon
Procon is a global supplier of custom fluid solutions that
combines collaborative design expertise, bespoke solution
engineering, and a high-quality, highly-engineered portfolio of
niche positive displacement pumps. It is a valued channel partner
to a diverse base of "top tier" OEMs and distributors offering
tailored solutions for critical and challenging fluid system
applications. The company is a leading innovator in the rotary vane
and gear pump segments
About Standex
Standex International Corporation is a global multi-industry
manufacturer in five broad business segments: Electronics,
Engraving, Scientific, Engineering Technologies, and Specialty
Solutions with operations in the United
States, Europe,
Canada, Japan, Singapore, Mexico, Brazil, Turkey, South
Africa, India, and
China. For additional information, visit the Company's
website standex.com.
Safe Harbor Language
Statements contained in this Press Release that are
not based on historical facts are "forward-looking
statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be
identified by the use of forward-looking terminology such as
"should," "could," "may," "will,"
"expect," "believe," "estimate,"
"anticipate," "intend," "continue," or
similar terms or variations of those terms or the negative of those
terms. There are many factors that affect the Company's
business and the results of its operations and that may cause the
actual results of operations in future periods to differ materially
from those currently expected or anticipated. These
factors include, but are not limited to: the impact of pandemics
such as the current coronavirus on employees, our supply chain, and
the demand for our products and services around the world;
materially adverse or unanticipated legal judgments, fines,
penalties or settlements; conditions in the financial and banking
markets, including fluctuations in exchange rates and the inability
to repatriate foreign cash; domestic and international economic
conditions, including the impact, length and degree of economic
downturns on the customers and markets we serve and more
specifically conditions in the automotive, construction, aerospace,
defense, transportation, food service equipment, consumer
appliance, energy, oil and gas and general industrial markets;
lower-cost competition; the relative mix of products which impact
margins and operating efficiencies in certain of our businesses;
the impact of higher raw material and component costs, particularly
steel, certain materials used in electronics parts, petroleum based
products, and refrigeration components; the impact of higher
transportation and logistics costs, especially with respect to
transportation of goods from Asia;
the impact of inflation on the costs of providing our products and
services; an inability to realize the expected cost savings from
restructuring activities including effective completion of plant
consolidations, cost reduction efforts including procurement
savings and productivity enhancements, capital management
improvements, strategic capital expenditures, and the
implementation of lean enterprise manufacturing techniques; the
potential for losses associated with the exit from or divestiture
of businesses that are no longer strategic or no longer meet our
growth and return expectations; the inability to achieve the
savings expected from global sourcing of raw materials and
diversification efforts in emerging markets; the impact on cost
structure and on economic conditions as a result of actual and
threatened increases in trade tariffs; the inability to attain
expected benefits from acquisitions and the inability to
effectively consummate and integrate such acquisitions and achieve
synergies envisioned by the Company; market acceptance of our
products; our ability to design, introduce and sell new products
and related product components; the ability to redesign certain of
our products to continue meeting evolving regulatory requirements;
the impact of delays initiated by our customers; our ability to
increase manufacturing production to meet demand including as a
result of labor shortages; and potential changes to future pension
funding requirements. In addition, any forward-looking
statements represent management's estimates only as of the day made
and should not be relied upon as representing management's
estimates as of any subsequent date. While the Company may elect to
update forward-looking statements at some point in the future, the
Company and management specifically disclaim any obligation to do
so, even if management's estimates change.
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SOURCE Standex International Corporation