CTB International Corp. to Acquire Roxell N.V.MILFORD, Ind.--(BUSINESS WIRE)--Aug. 12, 1998--CTB International Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CTBC CTBC Computer Take Back Campaign CTBC Cape Town Bridge Club (South Africa) ) today announced that it has signed a letter of intent to acquire Roxell N.V. of Maldegem, Belgium. Roxell is a leading manufacturer of automated feeding and watering systems as well as feed storage facilities for the poultry and swine swine, name for any of the cloven-hoofed mammals of the family Suidae, native to the Old World. A swine has a rather long, mobile snout, a heavy, relatively short-legged body, a thick, bristly hide, and a small tail. production industries. The purchase price of 1.43 billion Belgian francs Noun 1. Belgian franc - formerly the basic unit of money in Belgium franc - the basic monetary unit in many countries; equal to 100 centimes centime - a fractional monetary unit of several countries: France and Algeria and Belgium and Burkina Faso and , approximately $39 million, will be paid in cash and will be financed through additional borrowings. The acquisition is subject to completion of a definitive agreement and other customary conditions, including approval of CTB's board of directors and Roxell's shareholders, and is expected to close within the next two months. Roxell recorded sales of $40.6 million and net income of $2.5 million in the fiscal year ended October 31, 1997, based on a current exchange rate of 36.7 Belgian francs to the U.S. dollar. The acquisition is expected to be modestly accretive to CTB's earnings in 1999 despite the borrowing cost, amortization of goodwill and other effects of purchase accounting associated with the acquisition, and is anticipated to contribute more significantly to earnings growth in the future as synergies are more fully realized. CTB CTB Council Tax Benefit (UK) CTB Coopération Technique Belge (French: Belgian Technical Cooperation) CTB Commonwealth Transportation Board (Virginia Department of Transportation) was founded by Howard Brembeck in 1952, and a predecessor company of Roxell was founded by Howard Brembeck and Forrest Ramser in 1967. The companies have operated separately since 1985. Chris Chocola Joseph Christopher "Chris" Chocola (born February 24 1962) was a Republican member of the United States House of Representatives from Indiana's At-large congressional district (map) from 2003 to 2007. He was defeated in 2006 by Joe Donnelly. , president and chief executive officer of CTB, said, "CTB's renewed relationship with Roxell strengthens both companies' global presence and results in a clear market leader in the poultry and swine equipment industries worldwide." "By reuniting these companies, we are forming a partnership linked not only by our roots, but by a mutual focus on product innovation and distribution networks that are unparalleled within the industry as well as complementary geographic coverage and individual expertise," Chocola said. "It is hard to imagine a better opportunity to advance our overall strategy of providing our customers the most complete, highest-value package of products available in the world and to lead the consolidation within the industry worldwide." Under the terms of the proposed transaction, Roxell will continue to operate under the leadership of Gerard van Rooijen, managing director, and Roxell's management team. No immediate changes in operations are planned. "As an autonomous subsidiary of CTB, Roxell will be able to offer its customers the best of both worlds," mentions Gerard van Rooijen. "We will continue to spearhead our mission: the best feeding and drinking systems for poultry and pigs, but will also benefit from belonging to the market leader in our sector creating synergies with our new partners." CTB International Corp., based in Milford, Indiana Milford is the name of two places in the U.S. state of Indiana:
This document contains certain statements regarding the future, including, without limitation, the potential effects of the above-referenced transaction, and involves certain risks and uncertainties regarding CTB International Corp.'s business and operations and the agriculture industry. Actual results may differ materially from those projected in forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Please refer to the Company's Securities and Exchange Commission filings, including, but not limited to, the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filing, where specific risk factors that could cause actual results to differ materially from the forward-looking statements made in this news release are identified. CONTACT: CTB International Corp. Don Steinhilber, 219/658-4191 http://www.ctbinc.com |
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