Butler Manufacturing Agrees to Sell Grain Systems Division.KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo.--(BUSINESS WIRE)--April 28, 1997--Butler Manufacturing Company announced today that it has entered into a preliminary agreement to sell its Grain Systems division to CTB CTB Council Tax Benefit (UK) CTB Coopération Technique Belge (French: Belgian Technical Cooperation) CTB Commonwealth Transportation Board (Virginia Department of Transportation) , Inc. The business will be sold for a cash price of approximately $33 million. Closing is expected to occur within thirty days. CTB, Inc. is a privately owned company that owns several agricultural equipment entities, including Brock brock n. Chiefly British A badger. [Middle English brok, from Old English broc, of Celtic origin.] Manufacturing, a grain storage business based in Indiana. If the transaction occurs as planned, Butler will realize an after-tax gain of about $15 million, or $2.00 per share. Net cash proceeds to Butler will be approximately $23 million. Commenting on the transaction, Robert West Robert West (b. 1928) is a Professor Emeritus of Chemistry at the University of Wisconsin-Madison and world-renowned chemist best known for his groundbreaking research in silicon chemistry, as well as for his work with oxocarbons and organolithium compounds. , chairman and chief executive officer of Butler, said, "The combining of Butler's Grain Systems division with CTB will result in a larger, stronger, geographically diversified company diversified company A company engaged in varied business operations not directly related to one another. A diversified company is less likely to suffer either a collapse or a spectacular gain in earnings compared with a firm concentrating its operations in a serving the farm and commercial grain storage markets and U.S. and international grain processing industries, providing important benefits to dealers and end customers and expanded opportunities for employees of both Butler and CTB." John Holland, vice president of finance and chief financial officer of Butler, stated, "In addition to share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. , with the cash received from this sale we will have the ability to make additional investments in the growth of our core nonresidential construction businesses, where we have much greater critical mass and opportunities for sustainable competitive advantage." Butler Manufacturing Company is the world's leading producer of pre-engineered building systems and is a supplier of specialty components and construction services for the nonresidential construction market. CONTACT: John Holland Vice President - Finance 816/968-3255 |
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