Printer Friendly

MOMENTUM TO DIVEST TEXTILES GROUP, WILL FOCUS ON GRAPHICS BUSINESS

 BELLEVUE, Wash., June 21 /PRNewswire/ -- Momentum Distribution Inc. (NASDAQ: MMDI) today announced that it plans to divest the two subsidiaries that comprise its Textiles Business Group so that it can devote more attention and resources to what it considers to be a more promising growth area: its Graphics Group, which comprises Momentum Graphics Inc.
 VWR Textiles & Supplies and its Petco operating division will be sold to Hanes Cos. Inc., headquartered in Winston-Salem, N.C. Momentum Distribution is negotiating the sale of Momentum Textiles to that subsidiary's managers and employees. Pending shareholder and regulatory approvals, both transactions are expected to close by Aug. 31, 1993. The net gain on the disposition of the Textiles Group is presently estimated to be in the range of $1.50 - $1.60 per share.
 "The most critical aspect of this divestiture involves Momentum Graphics," said John H. Goddard Jr., Momentum president and chief executive officer. "Divestiture of the two subsidiaries will allow Momentum Distribution's management to devote focus and capital to our remaining subsidiary, Momentum Graphics, and will enable it to perform more profitably in the dynamic and growing markets it currently serves, printing and publishing.
 "The decision to divest our Textiles Group was difficult, but it is the right decision for the long-term interests of customers, employees and shareholders," Goddard said.
 Momentum Distribution Inc. distributes supplies and equipment to printers, furniture and bedding manufacturers, and related businesses throughout the United States.
 -0- 6/21/93
 /CONTACT: John H. Goddard of Momentum Distribution, 206-646-6550/
 (MMDI)


CO: Momentum Distribution Inc.; Hanes Cos. Inc. ST: Washington, North Carolina IN: TEX SU:

JH-SW -- SE002 -- 3913 06/21/93 08:32 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 21, 1993
Words:273
Previous Article:BIO-IMAGING TECHNOLOGIES, INC. APPOINTS WILLIAM A. WEGENER, M.D., PH.D. TO THE NEWLY CREATED POSITION OF MEDICAL DIRECTOR
Next Article:KEY TRONIC TO ACQUIRE HONEYWELL KEYBOARD DIVISION
Topics:


Related Articles
MOMENTUM DISTRIBUTION REPORTS PROFIT FOR QUARTER, YEAR-END RESULTS
MOMENTUM DISTRIBUTION NAMES GODDARD PRESIDENT; DECLARES THREE-FOR-ONE STOCK SPLIT
MOMENTUM DISTRIBUTION REPORTS SECOND-QUARTER RESULTS
MOMENTUM DISTRIBUTION REPORTS THIRD-QUARTER RESULTS
MOMENTUM DISTRIBUTION REPORTS RESULTS FOR 1992
MOMENTUM DISTRIBUTION REPORTS FIRST-QUARTER EARNINGS
MOMENTUM DISTRIBUTION REPORTS FIRST-QUARTER EARNINGS
DIXIE SELLS YARN PLANT.
AlliedSignal Continues Transformation of Materials Businesses to Higher Growth Markets; Focuses on Performance Polymers.
Ciba sells textiles unit.

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