ALLEN GROUP COMPLETES ACQUISITION
ALLEN GROUP COMPLETES ACQUISITION MELVILLE, N.Y., July 30 /PRNewswire/ -- The Allen Group Inc.
(NYSE: ALN) today announced that it completed its acquisition of Alliance Telecommunications Corporation for an initial purchase price of approximately $44 million, consisting of approximately $22 million in cash, $6 million of Allen Group common stock and $16 million of new Allen Group convertible debentures. The former Alliance shareholders may earn additional purchase price based on the sales performance of specified product lines of Alliance through 1994. In addition, Allen prepaid approximately $31 million of Alliance bank and insurance company debt on July 30.
Alliance Telecommunications, whose sales in 1991 were $64 million, is the recognized leader in microcell products, which are expected to become a major factor in improving cellular telephone coverage and capacity. Allen expects the acquisition of Alliance not to be dilutive to earnings per common share in the second half of 1992 and to add to earnings per common share thereafter. The Allen Group Inc. manufactures and markets electronic and other products, principally for the telecommunications and automotive industries, including mobile communications equipment, automotive test equipment and truck components. -0- 7/30/92 /CONTACT: Robert G. Paul or Robert A. Youdelman of the Allen Group, 516-293-5500/ (ALN) CO: Allen Group Inc. ST: New York IN: AUT SU: TNM
PS-LR -- NY088 -- 5209 07/30/92 15:15 EDT
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|Date:||Jul 30, 1992|
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