VVP America Reaches Agreement with SunSource to Purchase Harding Glass
11 January 2000
VVP America Reaches Agreement with SunSource to Purchase Harding GlassMEMPHIS, Tenn., and PHILADELPHIA, Jan. 10 -- VVP America, Inc. has signed a letter of intent with SunSource, Inc. to purchase its subsidiary, Harding Glass, Inc., according to a joint announcement made today by Mark A. Burke, president and chief executive officer of VVP America, and Maurice P. Andrien, Jr., SunSource president and chief executive officer. The transaction is expected to close by March 1, subject to certain closing conditions, including regulatory approvals. Regarding the agreement, Burke says, "The acquisition of Harding Glass is consistent with VVP America's objective to grow all facets of our glass business in the United States. The acquisition of a quality company such as Harding Glass provides VVP with the opportunity to expand our presence in the glass industry." Andrien says, "While our Harding Glass subsidiary is a solid company with $118 million in annual revenues, it is clearly non-strategic in relation to the other business opportunities available to SunSource." Andrien noted that the intended sale will reduce the SunSource's borrowing levels and improve its debt leverage ratios. He also added that this action will enhance SunSource's ability to pursue strategic initiatives centered around its core businesses. As a result of its proposed divestment of the Harding business, SunSource expects to record a fourth quarter 1999 pre-tax loss on discontinued operations of approximately $23 million, including an expected loss on the sale of the Harding business relating to the partial write-off of goodwill. VVP America is involved in the distribution of flat and automotive glass, fabrication of thick glass tabletops and retailing and installation of various glass products. From its headquarters in Memphis, Tennessee, VVP America operates more than 120 fabrication, distribution, retail and contract glazing units in 21 states, primarily in the South and West. VVP America is a subsidiary of Vitro Plan, S.A. de C.V., which, in turn, is a subsidiary of Vitro, S.A. de C.V., a multi-billion-dollar North American glass company headquartered in Monterrey, Mexico. Vitro's subsidiaries produce glass containers, flat glass, automotive glass, glassware, plastic containers, aluminum cans, and household appliances for commercial, industrial and consumer use. Vitro's subsidiaries supply numerous industries, including the food and beverage, construction and automotive sectors. Founded in 1909, Monterrey-based Vitro has strategic alliances with leading companies around the world. Vitro operates more than 100 facilities in eight countries, including Mexico and the United States, and exports products to more than 70 countries worldwide. For more information, please access the company's Web site at http://www.vto.com. SunSource Inc. is one of the nation's leading providers of value-added services and products to retail and industrial markets in North America. In addition to Harding Glass, the Company's Industrial Services businesses provide parts supply, engineering and repair services throughout the U.S., Canada, and Mexico. Its Kar Products subsidiary offers distribution of maintenance and repair parts and personalized inventory management services. Its Hillman Group subsidiary is the leading provider to hardware outlets of merchandising systems, in-store service work and small parts such as fasteners, letters, signs, and keys. This press release contains statements by SunSource that involve risks and uncertainties and may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current views and are based upon certain assumptions relating to current business conditions overall. Actual results could differ materially from those currently anticipated as a result of a number of factors, including risks and uncertainties discussed under the caption "Risk Factors" set forth in Item 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 1998, as filed with Securities and Exchange Commission. Given these uncertainties, current or prospective investors are cautioned not to place undue reliance on any such forward-looking statements to reflect future events or developments. For more information on the Company, please visit its website at http://www.prnewswire.com/comp/115271.html.