Case Corp. reaches agreement to sell Viscosity Oil Co. to Pennzoil for $35 million.RACINE, Wis.--(BUSINESS WIRE)--Aug. 31, 1995--Case Corp. (NYSE NYSE See: New York Stock Exchange :CSE (Certified Systems Engineer) See Microsoft certification. ) announced today that it has agreed to sell its Viscosity Oil Company division to Pennzoil Products Company subject to customary anti-trust review, for approximately $35 million. ``This transaction, with a recognized leader in the lubricants business, ensures that our customers will continue to have access to high-quality oil and lubricant products as part of our complete product support program,'' said Jean-Pierre Rosso, Case president and chief executive officer. Rosso said that Case would realize a gain from the sale, which will be reflected in its third quarter operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before . Case plans to use the proceeds to support the growth of its core equipment business. As part of the sale, Case will retain ownership of formulas and trademarks for the Hy Tran Plus(R), TCH TCH Trans-Canada Highway TCH Texas Children's Hospital (Houston, TX) TCH The Children's Hospital TCH Traffic Channel TCH Threshold Crossing Height TCH Toyota Camry Hybrid TCH Taurocholic Acid (TM) and Number 1(TM) transmission fluids and engine oils. Pennzoil will be licensed to produce these products under a long-term supply agreement for exclusive sale through Case and Case IH dealers and stores in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . In addition, Pennzoil will provide lubricants to Case manufacturing facilities for use in new agricultural and construction equipment. ``Hy Tran Plus, TCH and Number 1 are proven, quality brands that are highly valued by our customers,'' Rosso said. ``In Pennzoil, we have a supplier that can continue Viscosity's high standards,'' Rosso added. Viscosity is based in Willowbrook, Illinois Willowbrook is the name of some places in the U.S. state of Illinois:
Case Corporation, with net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $4.3 billion in 1994, is a leading worldwide designer, manufacturer and distributor of agricultural and construction equipment. Headquartered in Racine, Wisconsin, the company's products are sold through a network of approximately 4,100 independent dealers and distributors in more than 150 countries. CONTACT: Case Corp., Racine William B. Masterson, 414/636-5793 Sandra J. Lasch, 414/636-6473 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion