Reinhold Industries, Inc. Announces Sale of Bingham Business Unit
23 December 2004 - 4:36AM
PR Newswire (US)
Reinhold Industries, Inc. Announces Sale of Bingham Business Unit
SANTA FE SPRINGS, Calif., Dec. 22 /PRNewswire-FirstCall/ --
Reinhold Industries, Inc. (NASDAQ:RNHDA) of Santa Fe Springs,
California, announced today that on December 17, 2004, Samuel
Bingham Enterprises, Inc., a wholly-owned subsidiary of Reinhold
Industries, Inc., sold certain assets and transferred certain
liabilities to Finzer Roller, L.L.C. for $3.127 million cash,
subject to post-closing adjustments. The assets sold included
accounts receivable, inventories, prepaid expenses, equipment, real
property, tangible personal property, intellectual and other
intangible property. Liabilities transferred include accounts
payable, accrued expenses and defined benefit pension plan
obligations. The purchase price will be adjusted based on the
computation of closing date working capital. "When we purchased
Bingham in 2000, our strategy was to use this commercial business
as a balance against our heavy reliance on the defense industry,"
said Michael T. Furry, President and CEO. "We made significant
investments in infrastructure and human resources in order to
improve quality and safety. We closed unprofitable locations and
identified niche opportunities to generate higher margins. However,
during these last four years, the roller marketplace has contracted
and pricing competition among the remaining manufacturers has
intensified. We felt that given the continuing challenges in this
industry, our shareholders would be better served by selling
Bingham. I wish the Finzer family the best of luck in the future."
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: Judy Sanson of Reinhold Industries, Inc.,
+1-562-944-3281
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