Printer Friendly

SECOM GENERAL CORPORATION REACHES DEFINITIVE AGREEMENT TO SELL TRI-TEC PLASTICS UNIT

 LIVONIA, Mich., Feb. 26 /PRNewswire/ -- Secom General Corporation (NASDAQ-NMS: SECM) announced today that it has signed a definitive agreement to sell its Tri-Tec Plastics subsidiary to RXI Holdings, Inc. of Los Angeles, subject to a closing and other conditions.
 Under the terms of the agreement, Secom will receive $1.75 million at the closing and RXI Holdings will assume or pay off all the liabilities of Tric-Tec Plastics. Upon completion of the sale, Secom preliminarily estimates that it will record a loss of $1.1 million on the transaction, of which approximately $700,000 represents goodwill recorded when Tri-Tec was acquired by Secom. The $1.75 million to be paid is cash is subject to final adjustment based upon the net worth of Tri-Tec Plastics on the day before the closing. The sale is scheduled to close on April 1, 1993.
 Secom will also be entitled to contingent consideration based on sales of Tri-Tec Plastics for years 1993, 1994 and 1995. Although the maximum contingent consideration available under the agreement is capped at $200,000 in 1993 and $300,000 per year for 1994 and 1995, the company said it was not possible to estimate the amount it would earn under this provision because no contingent consideration is payable unless the net sales of Tri-Tec Plastics exceed $7.5, $8.5 and $10 million for 1993, 1994 and 1995, respectively.
 "We believe this transaction is important for Secom's long-term success," said Roy A. McKnight, chairman and chief executive officer, "as it will focus our attention and resources on the company's Michigan operations."
 The Tri-Tec Plastics unit, which was acquired by Secom in 1991 as part of a larger transaction, sells plastics bottles and caps and operates manufacturing facilities in Ontario and Redding, Calif. Sales for Tri-Tec Plastics were $6.5 million in 1992.
 Other than Tri-Tec Plastics, Secom operates five Michigan subsidiaries in two areas of basic manufacturing: metal parts forming and toolmaking, serving principally the automotive, trucking, consumer and construction industries.
 -0- 2/26/93
 /CONTACT: David Marczak, secretary/treasurer of Secom General, 313-953-3990, or Alex Tassos of Alex Tassos & Associates, financial public relations, for Secom, 619-748-0787/
 (SECM)


CO: Secom General Corporation; RXI Holdings, Inc.; Tri-Tec Plastics ST: Michigan, California IN: PAP SU: TNM

DH -- DE012 -- 0863 02/26/93 12:30 EST
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:Feb 26, 1993
Words:384
Previous Article:BLACKLISTED PILOTS NATIONWIDE MAY SUE UNION, VIRGINIA HIGH COURT RULES
Next Article:GM NORTH AMERICAN OPERATIONS TECHNICAL CENTER FOCUS
Topics:


Related Articles
SECOM GENERAL CORPORATION S-4 DECLARED EFFECTIVE FOR SECOM'S ACQUISITION OF REMAINING 30 PERCENT OF TRI-TEC
SECOM GENERAL COMPLETES ACQUISITION OF TRI-TEC PLASTICS
SECOM GENERAL CORPORATION REPORTS NET LOSS ON HIGHER SALES FOR FISCAL FIRST QUARTER
SECOM GENERAL CORPORATION REPORTS PROFITABLE SECOND QUARTER PRELIMINARY RESULTS; EXPECTS STRONGER SECOND HALF
SECOM GENERAL CORPORATION ANNOUNCES SALE OF TRI-TEC PLASTICS UNIT IS TERMINATED
SECOM GENERAL CORPORATION REPORTS NET PROFIT FOR FISCAL SECOND QUARTER
SECOM GENERAL CORPORATION ANNOUNCES TRANSACTIONS TO SELL THE ASSETS OF ITS TRI-TEC PLASTICS SUBSIDIARY
SECOM GENERAL CORPORATION REPORTS LOSS FOR ITS FISCAL FOURTH QUARTER; EXPECTS PROFITABILITY IN FIRST QUARTER ENDING DEC. 31
SECOM GENERAL CORPORATION COMPLETES SALE OF TRI-TEC PLASTICS ASSETS
SECOM GENERAL CORPORATION COMPLETES TRANSACTION WITH INVESTORS FOR $1 MILLION CASH INFUSION

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters