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TENNANT AGREES IN PRINCIPLE TO ACQUIRE THE BUSINESS OF CASTEX INDUSTRIES

 MINNEAPOLIS, Dec. 7 /PRNewswire/ -- Tennant Company (NASDAQ-NMS: TANT) CEO Roger L. Hale announced an agreement in principle to acquire the business of Castex Industries, Inc., a privately owned manufacturer of commercial floor maintenance equipment. The acquisition, which is expected to close in January 1994, is subject the execution of definitive documents and approval by Tennant's board of directors.
 Commenting on the proposed acquisition, Hale said, "Since 1983 Tennant has been pursuing growth in the commercial portion of the floor maintenance equipment industry. During those 10 years, our sales volume has grown to $15 million and we have established a fine reputation for quality at all levels and for innovative products and systems. However, our size, or critical mass, has not reached a level that could assure profitable operations.
 "We believe the acquisition of Castex, a company that has had rapid, profitable growth over a number of years, will give us critical mass. Their volume is approximately double ours, so the combination will put us comfortably in the top five in the industry.
 "Castex is currently building a new plant and office facility in Holland, Mich., which will become headquarters for our commercial equipment business. While integration plans are incomplete, one of our first steps will be to combine sales forces into what we believe will be the premier organization in North America.
 "Since its inception 20 years ago, Castex has built a leading position in carpet cleaning equipment. In recent years, they have also established a position in small hard floor cleaning equipment which is a perfect complement to Tennant's premier, quality hard floor equipment line."
 Tennant is a world leading manufacturer of floor maintenance equipment. Products include industrial and commercial scrubbers, sweepers, buffers and polishers, other specialized floor cleaning equipment, and a line of industrial floor coatings. Tennant's business currently is concentrated in industrial equipment, with a leading market share in North America and most international areas. For the most recently completed fiscal year, sales were $215 million and earnings were $13.2 million before extraordinary gain and cumulative effect of an accounting change. Tennant's stock is traded on the NASDAQ National Market under the symbol TANT.
 -0- 12/7/93
 /CONTACT: Richard Snyder, treasurer of the Tennant Company, 612-540-1208/
 (TANT)


CO: Tennant Company ST: Minnesota IN: SU: TNM

CP-DB -- MN001 -- 1129 12/07/93 07:58 EST
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Publication:PR Newswire
Date:Dec 7, 1993
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