ELCOR AGREES TO SELL OPERATING ASSETS OF MOSLEY MACHINERY COMPANY TO THE HARRIS WASTE MANAGEMENT GROUP
DALLAS, March 25 /PRNewswire/ -- Elcor Corporation (NYSE: ELK) today reported that it has entered into a definitive agreement whereby its wholly owned subsidiary, Mosley Machinery Company, Incorporated, will sell it operating assets to The Harris Waste Management Group, Inc., a wholly owned subsidiary of Amdura Corporation (NYSE: ADU) for a new Amdura Series B Cumulative Convertible Preferred Stock. The closing of the transaction is subject to completion of due diligence and certain other conditions. Harris plans to transfer certain machinery and equipment and other operating assets of Mosley to its manufacturing facilities in Cordele and Baxley, Ga., and will continue to operate Mosley's manufacturing facilities in Waco, Texas for at least 60 days to complete certain work in process and provide for an orderly transition of the manufacturing operations to Georgia. Harris has extended offers of continuing employment to about one- fifth of the 82 Mosley employees, and has asked the other employees to continue working through the transition period. The Mosley employees and appropriate government officials have been given notification under The Worker Adjustment and Retraining Notification Act that the Mosley plant in Waco, Texas will be closed following the 60-day transition period. Elcor plans to lease or sell the manufacturing facilities in Waco, Texas following completion of the transition period. Roy E. Campbell, chairman of the board and chief executive officer of Elcor Corporation, said, "We appreciate the many contributions made by Mosley's employees over the years and regret the necessity of closing the plant and the impact this will have on employees and the community." Richard J. Rosebery, executive vice president and chief financial officer of Elcor Corporation, said, "The way the transaction is structured, it will be a "Win-Win" deal for both parties. Lower levels of demand for recycling equipment following the onset of the recent recession had resulted in operating losses for Mosley during the last several years. By transferring the Mosley business to Harris' facilities, Harris will have a good opportunity to boost operating earnings, and Elcor will continue to participate in growth in these markets by virtue of the Amdura Convertible Preferred Stock. "The sale of the Mosley operating assets reflects Elcor's commitment to restoring profitability in the Industrial Products segment by June 30, 1994. At the present time, we expect the transaction to be closed and reported in the quarter ending March 31, 1994," he concluded. Amdura, headquartered in Tulsa, Okla., is through its subsidiaries a specialty manufacturer of products for the overhead lifting and waste recycling and disposal markets. Its common stock is listed on the New York Stock Exchange (ticker symbol: ADU). Elcor manufactures roofing products and industrial products. Each of Elcor's principal operating subsidiaries is the leader or one of the leaders within its particular market. Its common stock is listed on the New York Stock Exchange (ticker symbol: ELK). Elcor's roofing products facilities are located in Tuscaloosa, Ala.; Dallas and Ennis, Texas; and its newest facility is located in Shafter, Calif. Its industrial products facilities are located in Cleveland, Ohio; Dallas, Lufkin, Midland and Waco, Texas. -0- 3/25/94 /CONTACT: Richard J. Rosebery, executive vice president and chief financial officer of Elcor Corporation, 214-851-0500/ (ELK ADU)
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