ARC Group Worldwide Announces Sale of Non-Core Division
19 September 2017 - 6:15AM
ARC Group Worldwide, Inc. ("ARC" and the "Company") (Nasdaq:ARCW),
a leading global provider of advanced manufacturing and 3D printing
solutions, announced the completion of the sale of General Flange
& Forge LLC (“GF&F”), a non-core subsidiary of ARC, for
$3.0 million, to GFFC Holdings, LLC (“GFFC”). GFFC is owned
in part by Quadrant Management Inc. (“Quadrant”), which is an
affiliate of the Company. The sale of GF&F is therefore a
related party transaction.
The GF&F sale was made pursuant to an industry-wide auction
undertaken on behalf of the Company by a registered investment
banking organization that managed the sale process with prospective
bidders. GFFC entered into the bidding for the GF&F
assets only after the first rounds of the auction indicated
uncertainty both in respect to the timing for closing any
prospective sale and achieving the Company’s valuation
objectives. Mr. Alan Quasha, CEO of Quadrant and Chairman of
the Company’s Board of Directors, recused himself from any
deliberations or voting by the Board of Directors in respect of the
sale of the GF&F assets to GFFC. The Board of Directors
appointed a special committee consisting solely of independent
directors to oversee and negotiate the sale process. The
special committee engaged its own independent legal counsel to
advise the special committee in respect of the drafting of the
asset sale agreement and ancillary transaction documents in
accordance with customary terms and conditions for transactions of
this type. In this manner, the special committee was able to
conclude that the sale price and the terms and conditions for the
transaction were superior to any other offers, as well as fair and
reasonable to the Company and its shareholders.
ARC Interim Chief Executive Officer and Chief Financial Officer,
Drew Kelley, commented, “The products and services GFF provides
largely reside outside ARC’s precision manufacturing
solution. Therefore, we feel it is more efficient to focus
our resources on opportunities that expand our core business in
precision manufacturing and metal 3D printing.”
Mr. Kelley continued, “The $3.0 million of gross proceeds from
the sale will further increase ARC’s financial resources and
balance sheet flexibility. The proceeds from the sale will be
used to reduce our debt. Overall, we believe ARC is in a
strong capital position to support future growth of the
Company.”
About ARC Group Worldwide, Inc.
ARC Group Worldwide, Inc. is a global advanced
manufacturing and metal 3D printing service provider focused on
accelerating speed to market for its customers. ARC provides
a holistic set of precision manufacturing solutions, from design
and prototyping through full run production. These solutions
include metal injection molding, metal 3D printing, metal stamping,
plastic injection molding, clean room injection molding,
thixomolding, and rapid and conformal tooling. Further,
ARC utilizes technology to improve automation in manufacturing
through robotics, software and process automation, and lean
manufacturing to improve efficiency.
Forward Looking Statements
This press release may contain “forward-looking”
statements as defined in the Private Securities Litigation Reform
Act of 1995, which are based on ARC’s current expectations,
estimates and projections about future events. These include,
but are not limited to, statements, if any, regarding business
plans, pro-forma statements and financial projections, ARC’s
ability to expand its services and realize growth. These
statements are not historical facts or guarantees of future
performance, events or results. Such statements involve
potential risks and uncertainties, and the general effects of
financial, economic, and regulatory conditions affecting our
industries. Accordingly, actual results may differ
materially. ARC does not have any obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise. For
further information on risks and uncertainties that could affect
ARC’s business, financial condition and results of operations,
readers are encouraged to review Item 1A. – Risk Factors and all
other disclosures appearing in ARC’s Form 10-K for the fiscal year
ended June 30, 2016, as well as other documents ARC files from time
to time with the Securities and Exchange Commission.
CONTACT:
PHONE: (303)
467-5236Email:
InvestorRelations@arcw.com
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