Leucadia Announces Sale of Conwed
December 14 2016 - 4:32PM
Business Wire
Leucadia National Corporation (NYSE:LUK) (“Leucadia”) today
announced that it has entered into a definitive purchase agreement
to sell 100% of Leucadia’s wholly owned subsidiary, Conwed Plastics
(“Conwed”), to Schweitzer-Mauduit International, Inc., (NYSE:SWM)
(“SWM”). Under the terms of the transaction, which is expected to
close in January 2017, Leucadia will receive $295 million in cash
at closing plus potential earn-out payments over five years of up
to $40 million in cash to the extent the results of Conwed’s
subsidiary, Filtrexx International, exceed certain performance
thresholds. As of September 30, 2016, Leucadia’s net investment in
Conwed was $104 million, of which $46 million was tangible book
value. Leucadia estimates it will recognize a pretax gain of
approximately $175-185 million (excluding value associated with the
earn-out) upon the closing of this sale.
Rich Handler, Chief Executive Officer, and Brian Friedman,
President of Leucadia, stated: "Conwed has been a solid Leucadia
business for over thirty years; however, SWM approached us as a
compelling buyer and we agreed. We look forward to watching
Conwed’s outstanding CEO, Chris Hatzenbuhler, help propel Conwed to
even greater heights under its new partnership with SWM, and we
want to take this opportunity to express our most sincere thanks to
Chris and the entire Conwed team for their hard work and excellent
performance.”
Headquartered in Minnesota, Conwed is the leading light-weight
plastic netting manufacturer in the world with more than forty-five
years of experience developing netting solutions to help its
customers improve their products in a wide range of industries.
From agriculture, automotive, building and construction and
consumer products to filtration, hygiene, medical and packaging
applications, Conwed’s netting portfolio provides essential
performance functionalities.
About Leucadia
Leucadia National Corporation is a diversified holding company
that invests in a broad array of businesses. The Company’s
financial services businesses and investments include investment
banking and capital markets (Jefferies), asset management (Leucadia
Asset Management), foreign exchange trading services (FXCM), real
estate (HomeFed), commercial mortgage banking and servicing
(Berkadia), and vehicle finance (Foursight and Chrome). The
Company’s merchant banking businesses and investments include beef
processing (National Beef), a diversified holding company (HRG),
oil and gas exploration and production (Vitesse Energy and Juneau
Energy), automobile dealerships (Garcadia), manufacturing (Idaho
Timber), telecommunication services in Italy (Linkem), and a gold
and silver mine (Golden Queen).
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995 and other federal securities laws that are subject to the
safe harbor created by such laws and other legal protections.
Caution should be taken not to place undue reliance on any such
forward-looking statements because actual results may differ
materially from the results suggested by these statements. These
forward-looking statements are made only as of the date of this
presentation. We undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. In addition,
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our historical experience and present expectations or
projections. These risks and uncertainties include, but are not
limited to, those described in Part I, “Item 1A. Risk Factors” and
elsewhere in our Annual Report on Form 10-K for the period ended
December 31, 2015 and those described from time to time in our
periodic and other reports filed with the Securities and Exchange
Commission.
Tangible book value is a non-GAAP financial measure used by
Leucadia when reviewing each of our businesses and investments and
may not be comparable to non-GAAP measures used by other companies.
We believe that this information is useful to investors as it
allows them to view our businesses and investments through the eyes
of management while facilitating a comparison across historical
periods. We define tangible book value as shareholders’ equity less
intangible assets, net and goodwill. Our net investment
(shareholders’ equity) in Conwed at September 30, 2016 was $104
million, intangible assets, net and goodwill totaled $58 million
and tangible book value was $46 million.
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version on businesswire.com: http://www.businesswire.com/news/home/20161214006228/en/
Leucadia:Laura Ulbrandt, (212) 460-1900
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