Sheldahl and Molex Terminate Discussions
20 March 2000
Sheldahl and Molex Terminate Discussions
NORTHFIELD, Minn., March 20 Sheldahl, Inc.
announced today that it has received notification from Molex Incorporated
that it will not make a proposal to enter into an agreement to
acquire the remaining equity interest of Sheldahl not currently owned by
Molex. In addition, Molex waived certain rights under its Agreements with
Sheldahl dated November 18, 1998 and February 17, 2000.
"We will continue to work to maximize shareholder value by seeking
suitable strategic alternatives and delivering improvements in our Core and
Micro Products businesses," said Edward L. Lundstrom, President and Chief
Executive Officer. "This development provides us additional flexibility going
forward."
Sheldahl is a leading producer of high-density substrates, high-quality
flexible printed circuitry, and flexible laminates primarily for sale to the
automotive electronics and data communications markets. The Company, which is
headquartered in Northfield, Minnesota, has operations in Northfield;
Longmont, Colorado; South Dakota; Toronto, Ontario, Canada; and Chihuahua,
Chih., Mexico. Its sales offices are located in Detroit, Michigan; Hong Kong,
China; Singapore; and Mainz, Germany. As of January 31, 2000, Sheldahl
employed approximately 870 people. Sheldahl's common stock trade on the
Nasdaq National Market tier of the Nasdaq Stock Market under the symbol: SHEL.
In its fiscal year ended August 27, 1999, Sheldahl reported revenues of
$122.1 million. Sheldahl news and information can be found on the World Wide
Web at http://www.sheldahl.com .
The discussion above contains statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements by their nature
involve substantial risks and uncertainties as described by Sheldahl's
periodic filings. Actual results may differ materially depending on a variety
of factors, including but not limited to the following: the achievement of
Sheldahl's projected operating results, the ability of Sheldahl to
successfully obtain waivers from its lenders for any defaults on its debt
covenants, the achievement of efficient volume production and related sales
revenue results at Longmont, the ability of Sheldahl to identify and
successfully pursue other business opportunities, Sheldahl not entering into
an agreement with respect to a transaction or any such transaction not being
consummated and Sheldahl successfully defending and ultimately prevailing on
the action brought by Sheldahl shareholders. Additional information with
respect to the risks and uncertainties faced by Sheldahl may be found in, and
the prior discussion is qualified in its entirety by, the Risk Factors
contained in the Company's filings with the Securities and Exchange
Commission, including Sheldahl's Annual Report. Form 10-K for the fiscal year
ended August 27, 1999, Forms 10-Q for the quarters ended November 27, 1998;
February 26, 1999 and May 28, 1999, and other SEC filings.
Sheldahl does not undertake any obligations to update any such factors or
to publicly announce developments or events relating to the matters described
herein.