Schmitt Industries Completes Sale of SBS Business Line for $10.5 Million
November 27 2019 - 8:17AM
Schmitt Industries, Inc. (“Schmitt” or the “Company”) (NASDAQ:
SMIT) today announced that it has closed on the sale of 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
post-closing adjustments.
In conjunction with the sale, Tosei has entered into a 10-year
triple net lease of Schmitt’s 28th Avenue manufacturing facility.
Base rent for the first twelve months will be approximately $23
thousand a month.
Michael Zapata, Chairman and CEO of Schmitt, commented, “Our
board believes this transaction is a win for everyone. I want to
recognize our SBS team for their dedication and contributions to
Schmitt over the years. The sale aligns the SBS team and business
line with a dedicated strategic partner and unlocks significant
value for shareholders. Moving forward, we are excited to focus on
our Xact and Acuity business lines and will maintain options for
further value creation for our shareholders.”
Schmitt will allocate net proceeds among organic investment
opportunities, acquisitions, and capital returns to shareholders
based on expected return on invested capital.
About Schmitt Industries
Schmitt Industries, Inc., founded in 1987, designs, manufactures
and sells high precision test and measurement products, solutions
and services through its 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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