Schmitt Industries Reaches Agreement to Sell SBS Business Line for $10.5M
October 10 2019 - 12:31PM
Schmitt Industries, Inc. (“Schmitt”) (NASDAQ: SMIT) today announced
that it has entered into a definitive agreement to sell its Schmitt
Dynamic Balance Systems (“SBS”) business line to Tosei Engineering
Corp. and Tosei America, Inc. (collectively “Tosei”), for a
purchase price of $10.5 million in cash, subject to customary
closing adjustments. The transaction, which was approved by
Schmitt’s Board of Directors, is expected to close in the fourth
quarter of calendar year 2019 following a 30-day go shop period.
Michael Zapata, Chairman and CEO of Schmitt,
commented, “This transaction is the result of the management team’s
focused work to show the potential of the SBS business line. I’m
proud of the Schmitt team and what we’ve accomplished in a short
period of time and I am confident that Tosei is the best strategic
partner to maximize the SBS business line’s performance to continue
supporting SBS customers. Tosei is a market leader in the machine
tool market, and the combined entity will feature one of the
deepest product portfolios in the grinding industry to go along
with SBS’s superior quality and service.”
About Schmitt Industries
Schmitt Industries, Inc., founded in 1987,
designs, manufactures and sells high precision test and measurement
products, solutions and services through our SBS®, Acuity® and
Xact® product lines.
About Tosei Engineering
Corp.
Tosei Engineering Corp., a 100% owned subsidiary
of Tokyo Seimitsu Co., Ltd., established in 1949 and headquartered
in Japan, designs, manufactures and sells semiconductor
manufacturing equipment and measuring products under the corporate
brand of ACCRETECH worldwide.
FORWARD-LOOKING STATEMENTS
This document may contain forward-looking
statements made pursuant to the Private Securities Litigation
Reform Act of 1995. These statements are not guarantees of future
performance and involve risks and uncertainties that are difficult
to predict. Actual outcomes and results may differ materially
from what is expressed or forecasted in such forward-looking
statements due to numerous factors. A complete discussion of the
risks and uncertainties that may affect Schmitt’s business,
including the business of its subsidiary, is included in “Risk
Factors” in the Company’s most recent Annual Report on Form 10-K as
filed by the Company with the Securities and Exchange
Commission.
For further information regarding risks and
uncertainties associated with the Company’s business, please refer
to Schmitt’s SEC filings, including, but not limited to, its Forms
10-K, 10-Q and 8-K.
The forward-looking statements in this release
speak only as of the date on which they were made, and the Company
does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this
release, or for changes to this document made by wire services or
internet service providers.
For more information contact: |
Michael R. Zapata, Chairman and Chief Executive Officer(503)
227-7908 or visit our web site at www.schmitt-ind.com |
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