Printer Friendly

WILLCOX & GIBBS, INC. ANNOUNCES AGREEMENT TO ACQUIRE SUMMERS GROUP

 NEW YORK, Nov. 23 /PRNewswire/ -- John K. Ziegler, Chairman of Willcox & Gibbs, Inc. (NYSE: WG), announced that the Company had entered into an agreement to acquire Summers Group, Inc., an indirect subsidiary of BTR plc, for $60 million in cash and $25 million in three-year Notes of W&G, plus additional contingent consideration dependent on Summers Group's results for 1993 and 1994, subject to a maximum of $120 million. Summers Group, a distributor of electrical parts and supplies operating principally in Texas, Oklahoma, Louisiana, California and Arkansas, had revenues of $395 million and net income of $6 million in 1992. The closing of this transaction is anticipated to occur on December 3, 1993 following completion of definitive documentation for W&G's financing arrangements.
 In connection with this transaction, W&G is considering the issuance and sale of additional shares of W&G Common Stock to Rexel, formerly Compagnie de Distribution de Materiel Electrique, which is currently the beneficial owner of 30 percent of the outstanding W&G Common Stock, raising Rexel's ownership to 40 percent and the sale of W&G's businesses engaged in the distribution of parts and supplies to the apparel industry.
 Mr. Ziegler stated "the completion of these transactions will conclude an intense restructuring program intended to achieve the Company's objective of expanding the electrical distribution business and improving the Company's profitability and return on stockholders' equity on a sound financial basis."
 Willcox & Gibbs is one of the nation's largest distributors of electrical parts and supplies.
 -0- 11/23/93
 /CONTACT: John K. Ziegler, chairman and CEO of Willcox & Gibbs, 212-869-1800/
 (WG)


CO: Willcox & Gibbs, Inc.; Summers Group, Inc. ST: New York IN: CPR SU: TNM

LG -- NY022 -- 7170 11/23/93 09:48 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:Nov 23, 1993
Words:288
Previous Article:BBC WINS TWO INTERNATIONAL EMMYS
Next Article:ISTEC INDUSTRIES & TECHNOLOGIES REPORTS PROFITABLE THIRD QUARTER, NINE MONTHS
Topics:

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