AMTROL Announces Additional Capital Contribution, Management Changes and Second Quarter Charge.WEST WARWICK West Warwick (wôr`wĭk, –`ĭk), town (1990 pop. 29,268), Kent co., central R.I., on the Pawtuxet River; set off from Warwick and inc. 1913. Textile manufacturing remains a leading industry. West Warwick includes the village of River Point. , R.I.--(BUSINESS WIRE)--July 31, 1998--AMTROL Inc. announced today, following its recent acquisition of NOVA in Germany and last year's successful acquisition of ALFA in Portugal, that its majority shareholder, The Cypress Group LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , and management have made an additional capital contribution. AMTROL and its bankers have also agreed to amend its bank agreement. In addition, the Company announced a reorganization of the executive management group at its West Warwick, Rhode Island West Warwick is a town in Kent County, Rhode Island, United States. The population was 29,581 at the 2000 census. West Warwick was incorporated in 1913, making it the youngest town in the state. headquarters and its intention to take a second quarter charge of $14.5 million in connection with the management reorganization, delays related to starting-up production of production lines recently transferred to its West Warwick facility and a provision for warranty costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a 1995-1996 production problem. The second quarter charge includes cash outlays in 1998 of approximately $5.3 million and a further $3.7 million in 1999 and 2000, and non-cash charges of $5.5 million. In connectionwith the management reorganization, the Company appointed Andrew Massimilla, President of the Stratham Consulting Group, to the Company's board of directors. Mr. Massimilla has also been retained to help facilitate and oversee the execution of an improvement plan designed to increase the Company's operational efficiency. In addition, Mr. Albert Indelicato has been appointed AMTROL Inc.'s President and Chief Executive Officer and has been appointed to the Company's board of directors. Mr. Indelicato was most recently the president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Power Control Technology (NYSE NYSE See: New York Stock Exchange ), and has extensive executive and operational leadership experience. The Company indicated that the capital contribution by The Cypress Group, together with management, approximates $20.5 million. In addition, the Company announced that it amended the agreement with its bank lending group to reflect the additional capital contribution, allow for the early repayment of a portion of the principal outstanding and to modify certain loan agreement covenants to be more in line with the Company's business plans. The charge to be taken in the Company's second quarter includes severance and related costs in connection with the management reorganization and incremental costs associated with the December 1997 closure of the Company's Nashville, Tennessee production facility and the relocation of Nashville production to West Warwick, Rhode Island. The charge also includes abnormal warranty costs for a line of products relating to a manufacturing design problem which has since been corrected. In announcing all these changes, Jack Cashman, AMTROL's Chairman, said, "We are extremely pleased and fortunate to add these talented managers to our Corporate team. Together, they bring over 70 years of manufacturing and operational experience to AMTROL and their contribution has already had a positive impact on our Company. This organization also enables us to clearly focus on North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. while continuing our drive for international expansion based upon our European operations of AMTROL, ALFA and NOVA." AMTROL is a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. producer and marketer of flow and expansion control technology used in water systems and heating, ventilating ventilating Natural or mechanically induced movement of fresh air into or through an enclosed space. The hazards of poor ventilation were not clearly understood until the early 20th century. Expired air may be laden with odors, heat, gases, or dust. and air conditioning products. The Company's major products are pressure regulating tanks used in water well and hydronic hy·dron·ic adj. Of or relating to a heating or cooling system that transfers heat by circulating a fluid through a closed system of pipes. [hydr(o)- + -onic (as in electronic).] heating applications. AMTROL also manufactures returnable and non-returnable containers for refrigerant re·frig·er·ant adj. 1. Cooling or freezing; refrigerating. 2. Reducing fever. n. 1. A substance, such as air, ammonia, water, or carbon dioxide, used to provide cooling either as the working substance of gases and returnable cylinders to dispense heating and cooking gases. Products are marketed under the Well-X-Trol, Extrol, Therm-X-Trol and Champion brand names. AMTROL is a wholly-owned subsidiary of AMTROL Holdings Inc. which is controlled by Cypress Merchant Banking Partners, L.P. and Cypress Offshore Partners, L.P., private equity funds managed by The Cypress Group L.L.C.
CONTACT: AMTROL Inc.
Donald W. Reilly, 401/884-6300
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