THERMO FIBERTEK INC. ANNOUNCES INTENT TO ACQUIRE ENGINEERED SYSTEMS DIVISION OF ALBANY INTERNATIONAL CORP.
WALTHAM, Mass., April 6, 1993 -- Thermo Fibertek Inc. (AMEX: TFT) and Albany International Corp. (NYSE: AIN) announced today that they have reached agreement in principle for the acquisition by Thermo Fibertek of the assets, other than accounts receivable, of the Engineered Systems Division (RAESS) of Albany International for a cash purchase price of approximately $33 million. AES, which has facilities in the United States, Canada, Mexico, Brazil, and the United Kingdom, is an international supplier of cleaning, conditioning, and filtering equipment for the papermaking industry. The acquisition is subject to certain customary conditions, including negotiation of a definitive acquisition agreement, authorization by each company's board of directors, and regulatory approvals, including approval under U.S. antitrust laws. Thermo Fibertek, a majority-owned subsidiary of Thermo Electron Corporation, is a leading designer and manufacturer of recycling systems and accessories for the paper industry. Albany International is the world's largest producer of paper machine clothing. Thermo Fibertek and Albany International also announced their intent to form a worldwide strategic alliance to permit the two companies to provide the paper industry with the advantages of coordinated development and marketing. William A. Rainville, president and chief executive officer of Thermo Fibertek, stated, "We are excited about both the potential acquisition of AES and the strategic alliance with Albany. The process knowledge AES possesses complements both our recycling business and our accessories business. In addition, the combined expertise of Thermo Fibertek and Albany International will lead to the development of new products and technologies to better serve the paper industry." Spencer Standish, chairman of the board of Albany International, commented, "When Thermo Fibertek approached us about acquiring AES, we immediately recognized the potential for a 'win/win' transaction. The businesses of AES and Thermo Fibertek complement each other very well, and combining them in Thermo Fibertek's hands will provide the paper industry with a strong supplier with broad capabilities. At the same time, the strategic alliance being created assures that papermakers will receive the benefits of coordinated development and marketing between Thermo Fibertek and Albany." -0- 4/6/93 /CONTACT: John Hatsopoulos of Thermo Electron, 617-622-1111/ (TFT, AIN)
CO: Thermo Electron, Albay International Corp. ST: Massachusetts IN: PAP SU: TNM
DJ -- NE008 -- 3447 04/06/93 12:52 EDT
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|Date:||Apr 6, 1993|
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