Maxco invests in an intranet technology developer.LANSING, Mich.--(BUSINESS WIRE)--Feb. 3, 1997-- Continues to reshape business for growth with fourth transaction in 30 days Maxco Inc. (NASDAQ/NMS:MAXC) continued the 1997 makeover of its business today with the announcement of its fourth transaction since the new year began. The Lansing-based holding company said it paid an undisclosed amount of cash for a 15 percent equity stake in privately held Strategic Interactive, which provides web based Coming from a Web server. See Web application. training, education and other corporate communication solutions for companies such as Ford, General Motors, Dow Chemical, and Owens Corning Owens Corning Corporation is the world's largest manufacturer of fiberglass and related products. It was formed in 1935 as a partnership between two major American glassworks, Corning Glass Works and Owens-Illinois. The company was spun off as a separate entity November 1, 1938. . Strategic Interactive (www.siweb.com) employs approximately 20 people and is located on the campus of Michigan State University The campus of Michigan State University is located in East Lansing on the banks of the Red Cedar River, and comprises a contiguous area of 5,200 acres (21 km²), 2,000 acres (8 km²) of which are developed. in East Lansing East Lansing, city (1990 pop. 50,677), Ingham co., S central Mich., a suburb of Lansing, on the Red Cedar River; inc. 1907. The city was first known as College Park, but was renamed when it was incorporated. . SI began in MSU's Venture Center and it has ready access to the university's academic resources including MSU's renowned Eli Broad Eli Broad (born June 6, 1933) a native of Detroit, Michigan is a Jewish American billionaire who lives in Los Angeles, California. His last name is pronounced as rhyming with road. Broad is well known for his philanthropy and extensive art collection. Graduate School of Business, as well as the Industrial Psychology, Education Psychology, and Labor Relations Schools. "Strategic Interactive is an exciting, young company that has begun to teach corporate America how to harness intranets and the World Wide Web for training," Maxco Chairman Max A. Coon coon: see raccoon. said. "As a growing, well-managed and profitable business, Strategic Interactive fits nicely with Maxco's overall effort to re-deploy assets into businesses with potential for creating significant shareholder value." Strategic Interactive is profitable after only two years of operation. Maxco will report its stake in this company as an equity investment on its balance sheet. In addition, last week Maxco announced the sale of its former Akemi Inc. unit as well as investments in a French manufacturer of resins and composite materials for advanced applications, and in a Lansing-based limited liability corporation formed to own and develop $70 million worth of real estate in central Michigan
Central Michigan, often called Mid-Michigan, is a region in the Lower Peninsula of the U.S. state of Michigan. . Earlier in January, Maxco acquired the business and assets of Atmosphere Annealing annealing (ənēl`ĭng), process in which glass, metals, and other materials are treated to render them less brittle and more workable. Inc., a Lansing-based metal heat treating company with annual revenues of approximately $27 million. "In terms of financial health and capacity for creating value, Maxco is a vastly different company than it was in 1996," Coon said. "The recent divestitures of Akemi, and of Wright Plastics, which was sold in October 1996, have enabled Maxco to eliminate operations that had posted operating losses during the past two years. Those divestitures, combined with our July 1996 sale of our FinishMaster stock for $62.2 million, have resulted in a strong balance sheet and revamped financial structure that can more than meet our capital need for growth." Following the sale of its FinishMaster stock, Maxco retired more than $21.3 million of bank debt and repurchased over 750,000 shares of Maxco common stock. The company has also redeemed a series of its preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. in January 1997, eliminating a class of stock which had rights to convert into approximately 230,000 shares of common stock. "Our financial reorganization and the quality of our core businesses provide a strong opportunity for creating earnings momentum and cash flow, which we believe will translate into added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
Maxco's businesses include Ersco and Wisconsin Wire & Steel, construction supply units; Pak-Sak Industries Inc., which makes polyethylene packaging; and Atmosphere Annealing Inc., a metal heat-treating services company. The company also holds investments in a real estate development limited liability company, and in several technology-related companies: Medar Inc. (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 :MDXR), AXSON, S.A., and Strategic Interactive Inc. CONTACT: Maxco Inc., Lansing Max A. Coon or Vincent Shunsky, 517/321-3130 |
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