Mark IV Announces Sale of Industrial Filter Business
13 September 1999
Mark IV Announces Sale of Industrial Filter Business
AMHERST, N.Y.--Sept. 13, 1999--Mark IV Industries, Inc. announced today that it has sold its Industrial Filter Business to Clarcor, Inc for $144.8 million in cash (inclusive of net worth adjustments since March 1, 1999).The Industrial Filter Business, with approximately $150 million in revenue in fiscal 1999, is a leading international manufacturer of industrial and specialty filtration products and systems. The Group's products include a broad range of residential and commercial HVAC filters, high technology liquid filtration products for aerospace, marine, environmental, refinery, petrochemical and military applications and specialized industrial filters and filtration equipment.
Sal H. Alfiero, chairman and chief executive officer of Mark IV, said "The sale of Purolator Industrial Filters brings the aggregate proceeds from dispositions of non-core businesses in the last eight months to more than $460 million. The asset sales have been part of a program to improve the company's return on capital employed through a combination of the sale of non-core businesses, strategic acquisitions, debt and stock repurchases and on-going cost reduction efforts throughout the company."
Mr. Alfiero also said that the Industrial Filter transaction would be treated as a discontinued operation and that current and prior year earnings would be restated to reflect the disposition. He stated that there would be no gain or loss on the transaction, and that it would be earnings per share neutral to slightly accretive on a pro forma basis when the proceeds from the sale are applied to retire a combination of highest cost debt and the repurchase of common shares. He indicated, however, that restating past periods on a discontinued operations basis with the application of the proceeds in accordance with applicable accounting principles, will result in a dilution of five cents per share from continuing operations for the first half of both the current and previous fiscal years. The company has previously announced an earnings expectation for the current fiscal year of $1.69 to $1.75.
This press release contains forward-looking statements that involve risk and uncertainties as detailed from time to time in the company's SEC reports, including its report on Form 10-K for its fiscal year ended February 28, 1999. These risks and uncertainties could affect the company's actual results and cause them to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the company.
Mark IV Industries, Inc. is a $2.0 billion global manufacturing company headquartered in the Buffalo suburb of Amherst, New York, employing 16,000 people worldwide. The company's core technologies include power transmission, fluid transfer, power systems and components for global industrial and automotive markets. For more information on Mark IV, visit the company's web site at http://www.mark-iv.com.