Universal Mfg. Co. Announces Sale of Universal Distribution, LLC

ALGONA, Iowa--Universal Mfg. Co. of Algona, Iowa, announced today that it has completed the sale of its distribution division, Universal Distribution, LLC, to AER Sales, L. P. Universal Distribution distributed Ford and Motorcraft branded remanufactured Powertrain assemblies and components from warehouse locations in Peoria, Illinois, Des Moines, Iowa, and Omaha Nebraska.

Universal Mfg. Co. will continue its automotive parts remanufacturing operation in Algona, Iowa, where it remanufactures fuel pump assemblies, brake calipers, transfer cases, and transfer case engagement motors.

While the terms of the sale were not disclosed, according to Don Heupel, President of Universal Mfg. Co., the net effect of the sale would add about $3.00 per share to corporate earnings. Based on recent results, the sale of Universal Distribution will reduce earnings from operations by about 70%. Earnings from investment of sale proceeds is unknown.