Live Ventures Acquires 72-Year Old Independent Steel Manufacturer Precision Marshall
July 15 2020 - 8:00AM
Live Ventures Incorporated (Nasdaq: LIVE), a diversified holding
company, today announced the acquisition of Precision Industries,
Inc., which does business as Precision Marshall, for approximately
$31.5 million in cash. The Washington, Pennsylvania-based
independent manufacturer of premium tool steels and specialty
alloys was founded in 1948 and is a vital link in the nation’s
manufacturing supply chain. The company uses machine applications
to transform raw steel into tool-and-die steels needed in the auto,
appliance, aerospace and defense industries. Its reputation for
quality products and reliable distribution is exemplified by its
motto, “Value as Strong as Steel.”
The acquisition of Precision Marshall is expected
to increase Live Ventures’ consolidated revenues by approximately
$50 million per year.
Thomas Sedlak, who joined Precision Marshall in
2008 and has most recently served as Senior Vice President, has
been elevated to Chief Executive Officer. All current employees are
expected to be retained through the acquisition.
“We are delighted that Precision Marshall, a
company that has thrived for more than 70 years, is joining the
Live Ventures family,” said Jon Isaac, President and CEO of Live
Ventures. “Not only does Precision Marshall fit our strategy of
acquiring profitable companies that have demonstrated a strong
history of earnings power, they have the impressive history and
talent we seek as well. Their comprehensive network of independent
distributors impressively blankets the country.”
Isaac noted that the acquisition also represents an
excellent cultural fit. “Precision Marshall is a real home-town
success story. Like all of our Live Ventures companies, Precision
Marshall is rooted in the community where it contributes to the
local economy and serves as a responsible corporate neighbor.”
Precision Marshall was founded in the family garage
in 1948 by Thomas R. Milhollan. Tom’s son Jack Milhollan joined the
company in 1973, became president and CEO, and guided the company
to diversify products, invest in new technologies, and expand its
distribution network. The company sells precision steel and alloy
products exclusively through independent distributors. Throughout
the years Jack, who is retiring, placed emphasis on building and
retaining a dedicated, skilled workforce—the backbone of the
company and key to its success.
Isaac paid tribute to the Milhollan family’s
leadership: “We congratulate Jack on all he has accomplished—the
great company he guided—and we wish him happiness in the years
ahead. We look forward to working with the Precision Marshall team
as they grow their business and contribute to the success of Live
Ventures.”
Sedlak also praised the strategic rationale for the
acquisition. “Live Ventures’ diverse experience across industries,
including its strength in manufacturing, makes it the perfect
partner for this next stage of Precision Marshall. I look forward
to leading this long-time business success story into the next
decade and beyond.”
For more information about Precision Marshall,
please visit http://www.pmsteel.com.
About Live VenturesLive Ventures
Incorporated, originally incorporated in 1968, is a diversified
holding company with several wholly owned subsidiaries and a
strategic focus on acquiring profitable companies that have
demonstrated a strong history of earnings power. Through its
subsidiary Marquis Industries, the company manufactures and sells
residential and commercial carpets primarily in North America.
Marquis Industries also designs, sources and sells hard-surface
flooring. Through its subsidiary Vintage Stock, an award-winning
entertainment retailer, the company sells new and pre-owned movies,
classic and current generation video games and systems, music on CD
and LP, collectible comics, books, toys and more. Vintage Stock
ships product worldwide directly to the customer's doorstep.
Through its subsidiary Precision Industries, the company sells
premium tool steels and specialty alloys. Through its subsidiary
ApplianceSmart, the company sells new major household appliances in
the United States through a company-owned retail store in Columbus,
Ohio operating under the name ApplianceSmart®. All Live Ventures
companies are rooted in their local communities where they
contribute to the local economy and serve as responsible corporate
neighbors.
Forward-Looking and Cautionary
Statements The use of the word “company” or “Company”
refers to Live Ventures Incorporated and its wholly-owned
subsidiaries. This press release contains "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. In accordance with the safe harbor
provisions of this Act, statements contained herein that look
forward in time that include everything other than historical
information, involve risks and uncertainties that may affect the
company’s actual results. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar
statements. Live Ventures may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the “SEC”) on Forms 10-K and
10-Q, Current Reports on Form 8-K, in its annual report to
stockholders, in press releases and other written materials, and in
oral statements made by its officers, directors or employees to
third parties. There can be no assurance that such statements will
prove to be accurate and there are a number of important factors
that could cause actual results to differ materially from those
expressed in any forward-looking statements made by the company,
including, but not limited to, plans and objectives of
management for future operations or products, the market acceptance
or future success of our products, and our future financial
performance. The company cautions that these forward-looking
statements are further qualified by other factors including, but
not limited to, those set forth in the company’s Annual Report on
Form 10-K for the fiscal year ended September 30, 2019 (available
at http://www.sec.gov). Live Ventures undertakes no obligation to
publicly update or revise any statements in this release, whether
as a result of new information, future events, or otherwise.
Contact: Live Ventures
Incorporated Tim Matula, Investor Relations (425) 836-9035
tmatula@liveventures.com http://liveventures.com
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