GS Industries, Inc. to Sell Florida Wire and Cable, Inc.
CHARLOTTE, N.C.--(BUSINESS WIRE)--Nov. 19, 1999--
GS Industries, Inc. ("GSI GSI - Gensym Standard Interface ") announced today that it has entered into an agreement to sell its subsidiary, Florida Wire and Cable, Inc. ("FWC FWC Fish and Wildlife Conservation Commission (Florida)
FWC Foster Wheeler Corporation (Clinton, NJ)
FWC Family Winemakers of California
FWC Fresh Water Cooling
FWC Flight Warning Computer "), 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 Net Sales
The amount a seller receives from the buyer after costs associated with the sale are deducted.
This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $99 million and its earnings before interest, depreciation and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) 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 Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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.