Williams Controls Reaches Agreement to Sell Agriculture Equipment Business
4 April 2000
Williams Controls Reaches Agreement to Sell Agriculture Equipment Business
PORTLAND, Ore., April 4 Williams Controls, Inc.
today announced an agreement in principle to sell the
agriculture equipment business of Hardee Williams Inc. and Waccamaw Wheel
Williams, Inc. for approximately $2.9 million in cash and notes plus the
assumption of up to $200,000 of liabilities. The sale is expected to close on
or before April 30, 2000 after execution of closing documents.
The agriculture equipment business is being sold to an affiliate of
Chicago Capital Partners II, Inc. Chicago Capital, through its affiliate,
PACC, LLC, owns a manufacturer of agriculture tillage equipment located in
Columbus, Nebraska.
The proposed transaction includes the sale of accounts receivable to a
third party at closing for cash plus the sale of inventory when and as used
during the first year following closing plus a two-year note receivable for
any inventory not purchased during the first year. Any potential gain from
the sale will be reported when realized.
Gerard Herlihy, Williams Controls chief financial officer stated, "We are
pleased to sell Hardee and Waccamaw to a group committed to produce Hardee's
quality products and support Hardee's excellent dealer network from the
existing plant in Loris, South Carolina. Concluding this sale is a major step
in our strategic plan to focus management and capital resources on our growing
electronic and adjustable foot pedal markets."
David Onion, president of Chicago Capital, stated, "I am very pleased with
the opportunity that the Hardee business provides us. These product lines
complement our existing lines and they fit directly into our core strategy of
building a diverse manufacturer of agricultural equipment. In addition to
supporting and expanding the Hardee product line, this acquisition will allow
us to bring other high quality products to the Hardee dealer organization."
Williams Controls designs and manufactures electronic and adjustable pedal
systems and related position sensors for the truck, automotive, bus and off-
highway industries. You can reach Williams Controls on the Web at
http://www.wmco.com .
The statements included in this news release concerning predictions of
economic performance and management's plans and objectives constitute forward-
looking statements made pursuant to the safe harbor provisions of Section 21E
of the Securities Exchange Act of 1934, as amended, and Section 27A of the
Securities Act of 1934, as amended. These statements involve risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements. Factors which could cause or contribute to such
differences include, but are not limited to, factors detailed in the Company's
Securities and Exchange Commission filings; economic downturns affecting the
operations of the Company or any of its business operations, and the
unavailability of financing to complete management's plans and objectives.
The forward-looking statements contained in this press release speak only as
of the date hereof and the Company disclaims any intent or obligation to
update these forward-looking statements.