GS Industries, Inc. to Sell Florida Wire and Cable, Inc.
GS Industries, Inc. ("GSI") announced today that it has entered into an agreement to sell its subsidiary, Florida Wire and Cable, Inc. ("FWC"), to Insteel Industries, Inc. ("Insteel").
Under the terms of the agreement, GSI will sell all of the outstanding stock of FWC for $68.5 million, subject to a working capital adjustment based on a closing balance sheet. GSI and FWC also will enter into a five year agreement under which GSI will supply steel wire rod to FWC. The transaction is expected to close during January 2000. For the twelve months ending September 30, 1999,
FWC's net sales were $99 million and its earnings before interest, depreciation and amortization (EBITDA) was $10.0 million.
In making this announcement, Mark G. Essig, President and Chief Executive officer, commented, "Strategically, Florida Wire and Cable, Inc. did not fit into GSI's long term plans, and this sale allows GSI to concentrate its efforts on improving and expanding its core businesses of steel wire rod and mining products including grinding media and mill liners."
GS Industries, Inc. ("GSI") is the largest producer of steel wire rod in North America. GSI, through its Mining Products Group, is the largest global provider of grinding media and cast wear mill liners for the worldwide mining industry.
This press release contains forward-looking statements made in reliance upon the safe harbor of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results of the Company to differ materially from those matters expressed in or implied by such forward-looking statements.
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|Date:||Nov 19, 1999|
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