ParkOhio Completes Sale of Aluminum Products Business
03 Enero 2024 - 3:10PM
Business Wire
Park-Ohio Holdings Corp. (NASDAQ: PKOH) (the “Company”) today
announced that it has successfully completed the divestiture of its
Aluminum Products business (the “divested business”) to Angstrom
Automotive Group (the “Buyer”), effective December 29, 2023, for
approximately $50 million in cash and promissory notes, plus the
assumption of approximately $3 million of finance lease obligations
by the Buyer. The Company previously announced that the divested
business met the held-for-sale and discontinued operations
accounting criteria.
The sale proceeds, which will be used to repay a portion of the
Company’s outstanding indebtedness, consist of a cash down payment
of $20 million paid to the Company in December 2022; cash of $15.5
million paid to the Company at closing; and promissory notes
totaling $15 million payable to the Company on December 31, 2024,
of which $10 million is contingent on attaining certain revenue
milestones during 2024.
Matthew V. Crawford, Chairman, Chief Executive Officer and
President, stated, “The sale of our Aluminum Products business
enables us to achieve the dual goals of deleveraging our balance
sheet and reducing the capital intensity of our broader business.
Additionally, it provides us with greater flexibility to focus on
our core businesses which have seen record sales and backlogs. We
want to thank all our partners in building General Aluminum into an
industry leading enterprise.”
The Company will continue to report the results of the divested
business as a discontinued operations when it reports its results
for the fourth quarter and full year 2023.
ParkOhio is a diversified international company providing
world-class customers with a supply chain management outsourcing
service, capital equipment used on their production lines, and
manufactured components used to assemble their products.
Headquartered in Cleveland, Ohio, ParkOhio operates more than 130
manufacturing sites and supply chain logistics facilities
worldwide, through three reportable segments: Supply Technologies,
Assembly Components and Engineered Products.
This news release contains forward-looking statements, including
statements regarding future performance of the Company, that are
subject to known and unknown risks, uncertainties and other factors
that may cause our actual results, performance and achievements, or
industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. These factors that could cause actual
results to differ materially from expectations include, but are not
limited to, the following: our ability to realize any contingent
consideration from the sale of the Aluminum Products business; the
impact supply chain issues such as the global semiconductor
micro-chip shortage and logistic issues have on our business,
results of operations, financial position and liquidity; our
substantial indebtedness; the uncertainty of the global economic
environment; general business conditions and competitive factors,
including pricing pressures and product innovation; demand for our
products and services; the impact of labor disturbances affecting
our customers; raw material availability and pricing; fluctuations
in energy costs; component part availability and pricing; changes
in our relationships with customers and suppliers; the financial
condition of our customers, including the impact of any
bankruptcies; our ability to successfully integrate recent and
future acquisitions into existing operations; changes in general
economic conditions such as inflation rates, interest rates, tax
rates, unemployment rates, higher labor and healthcare costs,
recessions and changing government policies, laws and regulations,
including those related to the current global uncertainties and
crises, such as tariffs and surcharges; adverse impacts to us, our
suppliers and customers from acts of terrorism or hostilities,
including the conflicts between Russia and Ukraine and in the
Middle East, or political unrest, including the rising tension
between China and the United States; public health issues,
including the outbreak of infectious diseases and any impact on our
facilities and operations and our customers and suppliers; our
ability to meet various covenants, including financial covenants,
contained in the agreements governing our indebtedness;
disruptions, uncertainties or volatility in the credit markets that
may limit our access to capital; potential disruption due to a
partial or complete reconfiguration of the European Union;
increasingly stringent domestic and foreign governmental
regulations, including those affecting the environment or import
and export controls and other trade barriers; inherent
uncertainties involved in assessing our potential liability for
environmental remediation-related activities; the outcome of
pending and future litigation and other claims and disputes with
customers; our dependence on the automotive and heavy-duty truck
industries, which are highly cyclical; the dependence of the
automotive industry on consumer spending; our ability to negotiate
contracts with labor unions; our dependence on key management; our
dependence on information systems; and the other factors we
describe under “Item 1A. Risk Factors” included in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2022.
Any forward-looking statement speaks only as of the date on which
such statement is made, and we undertake no obligation to update
any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by law.
In light of these and other uncertainties, the inclusion of a
forward-looking statement herein should not be regarded as a
representation by us that our plans and objectives will be
achieved. The Company assumes no obligation to update the
information in this release.
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MATTHEW V. CRAWFORD PARK-OHIO HOLDINGS CORP. (440) 947-2000
Park Ohio (NASDAQ:PKOH)
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