Citation Corp. to acquire Castwell Division of Wells Manufacturing Co.BIRMINGHAM, Ala.--(BUSINESS WIRE)--July 17, 1995--Citation Corporation (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 :CAST) today announced that it has reached agreement with Wells Manufacturing Co. to acquire the assets of the Castwell Division of Wells subject to the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act The Hart-Scott-Rodino Antitrust Improvements Act of 1976 (Public Law 94-435, known commonly as the HSR Act) is a set of amendments to the antitrust laws of the United States, principally the Clayton Antitrust Act. The HSR Act was signed into law by President Gerald R. in connection with a pre-merger notification. Castwell manufactures and sells metallurgically controlled alloyed iron castings to numerous industrial markets. It has 446 employees, and for the nine months ended April 30, 1995 of its fiscal year, sales were $49.7 million and 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 (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) were $8.5 million. The company produces castings weighing one ounce to 40 pounds. The current management of Castwell is expected to remain with the company after the acquisition by Citation is complete. Castwell's casting products are used in a variety of durable goods durable goods Goods, such as appliances and automobiles, that have a useful life over a number of periods. Firms that produce durable goods are often subject to wide fluctuations in sales and profits. Also called consumer durables. , including exhaust manifolds, valve and roller lifter bodies, shift forks and gear blanks for automobiles and light trucks, as well as pump components, rings and fly wheels, valve components and other products for the hydraulic/pump, oil pumping, appliance and other commercial industries. The company specializes in difficult-to-produce castings. Citation Corporation produces gray and ductile iron, steel and aluminum castings for a wide variety of industries. The company currently has 11 divisions or subsidiaries in Alabama, New York Alabama is a town in Genesee County, New York, United States. The population was 1,881 at the 2000 census. The village is named after the State of Alabama. The Town of Alabama is in the northwest part of the county. , North Carolina, Ohio, Pennsylvania, Texas and Wisconsin. CONTACT: Citation Corporation, Birmingham Stanley B. Atkins, 205/871-5731 |
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