Printer Friendly

GS Industries, Inc. to Sell Florida Wire and Cable, Inc.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Nov. 19, 1999--

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.
COPYRIGHT 1999 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1USA
Date:Nov 19, 1999
Previous Article:IVI Receives Arbitration Request From Former Affiliate Owners.
Next Article:S&P Lowers Rating on Southern Peru Ltd. Export Notes.

Related Articles
Residuals: Maalox-time for dealing with 1960s rules.
Telecommunications and the Tangle of Taxes.
ADC Telecommunications Signs Cable Link, Inc. to Distribution Agreement.
Cable Link Enters Into Letter of Intent to Partner With High-Speed Wireless Internet Solution Provider.
Fraying at the edges: the condition of domestic wire chopping has some processors on edge.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters