Tecumseh Products Company Announces the Sale of the Majority of Its Electrical Components Operations to Regal Beloit Corporation
01 9월 2007 - 5:30AM
PR Newswire (US)
TECUMSEH, Mich., Aug. 31 /PRNewswire-FirstCall/ -- Tecumseh
Products Company (NASDAQ:TECUANASDAQ:TECUB) ("Tecumseh" or the
"Company") today announced that it has completed its previously
announced sale transaction with Regal Beloit Corporation
(NYSE:RBC), selling Regal Beloit the majority of Tecumseh's
Electrical Components business operations for $220 million in cash.
The gross selling price was reduced at closing to account for
amounts held in escrow pending resolution of working capital and
warranty adjustments. The operations sold included the Residential
& Commercial Motors and Asia Pacific divisions of Tecumseh's
Fasco business unit, which accounted for about 70% of Electrical
Components sales in 2006. Tecumseh has used the proceeds of the
transaction to pay in full the debt associated with its second lien
credit agreement as well as the majority of its outstanding first
lien debt. Ed Buker, Tecumseh's Chief Executive Officer, said: "The
completion of this sale transaction is an important element of our
ongoing initiatives to improve our liquidity and strengthen our
balance sheet, and enhances our ability to focus on our core
businesses and improve our financial performance." Effective with
the closing of the transaction, Regal Beloit Corporation assumes
ownership of the Fasco name. The businesses retained by Tecumseh
that formerly operated under the Fasco name, including the
Automotive & Specialty division, will now conduct business as
"Von Weise USA, Inc." in the U.S., "TPC Motores de Mexico, S. de
R.L. de C.V." in Mexico and "Von Weise of Canada Company" in
Canada. These divisions, while continuing to operate, have been
classified by Tecumseh as held for sale. Rothschild Inc. served as
financial advisor to Tecumseh. About Tecumseh Products Company
Tecumseh Products Company is a full-line independent global
manufacturer of hermetic compressors for residential and commercial
refrigerators, freezers, water coolers, dehumidifiers, window air
conditioning units and residential and commercial central system
air conditioners and heat pumps; and gasoline engines and power
train for snow throwers, industrial and agricultural applications
and recreational vehicles. About Regal Beloit Corporation Regal
Beloit Corporation is a leading manufacturer of mechanical and
electrical motion control and power generation products serving
markets throughout the world. Regal Beloit has manufacturing, sales
and service facilities throughout the United States, Canada,
Mexico, Europe and Asia. CAUTIONARY INFORMATION REGARDING
FORWARD-LOOKING STATEMENTS This release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that are subject to the safe harbor provision
created by that Act. In addition, forward-looking statements may be
made orally in the future by or on behalf of the Company.
Forward-looking statements can be identified by the use of terms
such as "expects," "should," "may," "believes," "anticipates,"
"will," and other future tense and forward-looking terminology.
Readers are cautioned that actual results may differ materially
from those projected as a result of certain risks and
uncertainties, including but not limited to i) the outcome of the
judicial restructuring of our Brazilian engine manufacturing
subsidiary; ii) the success of our ongoing effort to bring costs in
line with projected production levels and product mix; iii) our
ability to reduce a substantial amount of costs in the Engine &
Power Train group associated with excess capacity; iv) the extent
of any business disruption that may result from the restructuring
and realignment of our manufacturing operations or system
implementations, the ultimate cost of those initiatives and the
amount of savings actually realized; v) the ability of the Company
to maintain adequate liquidity in total and within each foreign
operation; vi) financial market changes, including fluctuations in
interest rates and foreign currency exchange rates; vii)
availability and cost of materials, particularly commodities,
including steel, copper and aluminum, whose cost can be subject to
significant variation; viii) weather conditions affecting demand
for air conditioners, lawn and garden product, portable power
generators and snow throwers; ix) the ultimate cost of resolving
environmental and legal matters; x) changes in business conditions
and the economy in general in both foreign and domestic markets;
xi) potential political and economic factors that could adversely
affect anticipated sales and production in Brazil; xii) potential
political and economic factors that could adversely affect
anticipated sales and production in India, including potential
military conflict with neighboring countries; xiii) the effect of
terrorist activity and armed conflict; xiv) economic trend factors
such as housing starts; xv) the effect of any business disruption
caused by work stoppages initiated by organized labor unions; xvi)
emerging governmental regulations; xvii) increased or unexpected
warranty claims; xviii) actions of competitors; xix) our ability to
profitably develop, manufacture and sell both new and existing
products; and xx) the ongoing financial health of major customers.
The forward-looking statements are made only as of the date of this
report, and we undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise. Contact: Teresa Hess Director, Investor
Relations Tecumseh Products Company 517-423-8455 Press releases and
other investor information can be accessed via the Investor
Relations section of Tecumseh Products Company's Internet web site
at http://www.tecumseh.com/. Tecumseh Products Company now offers
media access to news releases via RSS. Please go to
http://tecumseh.mediaroom.com/ to sign up for our RSS feeds.
DATASOURCE: Tecumseh Products Company CONTACT: Teresa Hess,
Director, Investor Relations, Tecumseh Products Company,
+1-517-423-8455, Web site: http://www.tecumseh.com/
http://tecumseh.mediaroom.com/ Company News On-Call:
http://www.prnewswire.com/comp/842875.html
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