MT. LAUREL, N.J.,
Nov. 17, 2014
/PRNewswire/ -- SL INDUSTRIES, INC. (NYSE MKT: SLI);
("SLI" or the "Company") a leading supplier of engineered
power and motion control solutions, announced today the divestiture
of RFL Electronics Inc., an indirect wholly owned subsidiary of
SLI. The divestiture is structured as a stock transaction
with a cash sales price totaling $20
million, less transaction fees and subject to a final
working capital adjustment, with proceeds of $2 million currently held in escrow pending
resolution of certain indemnification provisions contained in the
sales agreement.
The Boonton Township, NJ
based business was acquired by Hubbell Power Systems, Inc., a
subsidiary of Hubbell Incorporated (NYSE: HUBA, HUBB) which will
operate RFL Electronics as part of the Hubbell Power Systems
business.
"This divestiture was executed to streamline our portfolio
allowing the Company to improve its returns by focusing our
investments, resources, and management energy on our remaining
three segments." said Bill Fejes, SLI's CEO. "We
believe our remaining segments have significant upside opportunity,
both organically and through select bolt-on synergistic acquisition
opportunities, to improve returns and grow shareholder
value."
SLI will concentrate on its three remaining
segments:
- SL Power Electronics (SLPE) – designs, manufactures, and
markets high-reliability power conversion products for the medical,
test & measurement, and LED lighting segments under the Condor
and Ault brands.
- High Power Group (HPG) – designs and manufactures customer
power subsystems for use in powering medical, semiconductor,
military, and aerospace equipment under the Teal brand. HPG
also designs, manufactures, and markets power quality products
under the MTE brand used to improve the reliability and performance
of industrial power control systems.
- SL Montevideo Technology (SL-MTI) – designs and manufactures
custom, precision, high-performance motors, motor systems, and
wound components for the commercial aerospace, military, oil
down-hole, and medical segments.
About SL Industries, Inc.
SL Industries, Inc., designs, manufactures and markets
power electronics, motion control, power protection, and power
quality electromagnetic equipment that is used in a variety of
medical, commercial and military aerospace, solar, computer,
datacom, industrial, and telecom applications. For more information
about SL Industries, Inc. and its products, please visit the
Company's web site at www.slindustries.com.
Forward-Looking Statements
This press release contains certain "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, that reflect SLI's current expectations and
projections about its future results, performance, prospects, and
opportunities. SLI has tried to identify these forward-looking
statements by using words such as "may," "should," "expect,"
"hope," "anticipate," "believe," "intend," "plan," "estimate," and
similar expressions. These forward-looking statements are based on
information currently available to the Company and are subject to a
number of risks, uncertainties, and other factors that could cause
its actual results, performance, prospects, or opportunities in
2014 and beyond to differ materially from those expressed in, or
implied by, these forward-looking statements. These factors
include, without limitation: the effectiveness of the cost
reduction initiatives undertaken by the Company, changes in demand
for the Company's products, product mix, the timing of customer
orders and deliveries, the impact of competitive products and
pricing, constraints on supplies of critical components, excess or
shortage of production capacity, difficulties encountered in the
integration of acquired businesses and other risks discussed from
time to time in the Company's Securities and Exchange Commission
filings and reports. In addition, such statements could be affected
by general industry and market conditions and growth rates, and
general domestic and international economic conditions. Although
SLI believes that the expectations reflected in these
forward-looking statements are reasonable and achievable, such
statements involve significant risks and uncertainties, and no
assurance can be given that the actual results will be consistent
with these forward-looking statements. Except as otherwise required
by Federal securities laws, SLI undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events, changed
circumstances, or any other reason.
SL Industries, Inc.
Louis J. Belardi
Chief Financial Officer
856-727-1500 x 5525
louis.belardi@slindustries.com
SOURCE SL Industries, Inc.