Actuant Announces Sale of Mox-Med.Business Editors MILWAUKEE--(BUSINESS WIRE)--Aug. 27, 2001 Actuant Corporation (NYSE NYSE See: New York Stock Exchange :ATU (ADSL Transceiver Unit) A device that provides ADSL modulation of the telephone line. The device at the telco side is the ATU-C (Central), which is a line card plugged into the DSLAM. ) announced today that it has completed the sale of its Mox-Med, Inc. subsidiary to Saint-Gobain Performance Plastics Corporation, a subsidiary of Compagnie de Saint-Gobain of Paris, France. Gross proceeds from the transaction were approximately $40 million, which, after transaction expenses and income taxes, will be used to reduce Actuant's outstanding indebtedness. Mox-Med, Inc. is a custom manufacturer of precision silicone rubber Noun 1. silicone rubber - made from silicone elastomers; retains flexibility resilience and tensile strength over a wide temperature range synthetic rubber, rubber - any of various synthetic elastic materials whose properties resemble natural rubber extrusions and molded products for the medical and housewares house·wares pl.n. Cooking utensils, dishes, and other small articles used in a household, especially in the kitchen. markets. Based in Portage, Wisconsin Portage, Wisconsin is a city in Columbia County, Wisconsin, United States. The city uses the slogan "Where the North Begins". The population was 9,728 at the 2000 census. It is the county seat of Columbia CountyGR6. , Mox-Med has approximately 175 employees. Saint-Gobain Performance Plastics Corporation, a leader in the high performance plastics business, serves a broad range of industries including transportation, electronics, food processing, electrical, health markets and pharmaceutical. It processes high-performance polymers and elastomers into flexible foams, bearings, flexible tubing and fluid handling systems, films, fabrics and pressure sensitive tapes. Andrew G. Lampereur, Vice President and Chief Financial Officer of Actuant, commented, "We are pleased to have completed the divestiture of Mox-Med. It is a very good business, and is well-positioned to grow under new ownership. Given Actuant's focus on branded tools and highly engineered position and motion control systems, Mox-Med did not fit with our overall business strategies. As such, we decided to divest the business and use the proceeds to reduce debt. "Our debt reduction targets following the spin-off of APW APW All Pro Wrestling APW Altmar Parish Williamstown (School District; Parish, New York) APW Add-Printer Wizard (Microsoft Windows) APW Augmented Plane Wave APW Apparent Polar Wander Ltd. last July were $35 million in year one, and $40 million in year two. The first year goal was met prior to selling Mox-Med. Strong cash flow generation has allowed Actuant to significantly reduce its debt over the past year and prepayments will result in no scheduled debt payments at all in fiscal 2002. Since the spin-off approximately one year ago, Actuant's debt has been reduced by over $100 million, reflecting operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. , and proceeds from both the Mox-Med divestiture and Accounts Receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying Securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. . We expect financing costs to decline by nearly $10 million, or $0.73 per share, in fiscal 2002, compared to the current fiscal year, due to delevereging and lower interest rates." The Company announced that it will be providing updated earnings guidance for fiscal 2002, reflecting the removal of Mox-Med results on its fourth quarter earnings conference call which will be held on October 4, 2001. It will also disclose the net gain associated with the Mox-Med divestiture at that time. About Actuant Actuant, headquartered in Milwaukee, Wisconsin, is a diversified industrial company with operations in 15 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools. Products are offered under such established brand names as Enerpac, Gardner Bender, Milwaukee Cylinder, Nielsen Sessions, Power-Packer and Power Gear. For further information on Actuant and its business units, visit the Company's website at www.actuant.com. |
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