Supreme Industries, Inc. (NYSE Amex: STS), a leading manufacturer of specialized commercial vehicles, including truck bodies, shuttle buses and armored vehicles, today announced several key updates.
TAG Litigation Settlement
On May 25, 2011, Supreme settled its long-standing litigation with The Armored Group. On Jan. 21, 2009, The Armored Group (“TAG”) filed a complaint against affiliates of Supreme Industries, Inc. (the “Company”) alleging breach of oral contract, unjust enrichment and other claims, including that the Company had an obligation to pay TAG a 10% commission on all sales of armored vehicles to the United States Department of State under a contract with the United States Department of State providing for up to $98 million in sales. On May 25, 2011, the Company and TAG signed a Civil Settlement Agreement, under the terms of which this lawsuit will be dismissed and the Company will: (i) pay to TAG the cash sum of $1.1 million ($400,000 payable on or about May 25, 2011, and the balance of $700,000 payable over the next 12 months in the principal amount of $58,333 per month plus accrued interest at 5.75% simple interest); and (ii) issue and deliver to TAG on or about May 25, 2011, 350,000 shares of Supreme’s Class A Common Stock and an additional 350,000 shares on Jan. 15, 2012.
Kim Korth, President and CEO of Supreme, commented: “Knowing that there were no guarantees of the outcome of the suit, the Board of Directors concluded it was in the best interest of Supreme to get this issue behind us.”Organizational Update: In addition to the previously announced hiring of Matt W. Long as the new Chief Financial Officer, Supreme has also made two recent additional key hires.
- Jacqueline V. Daniels - Vice President of Human Resources. Jackie comes to Supreme after a long career in human resources. She recently served as Vice President of Human Resources at TAG Holdings LLC (no relationship to the aforementioned TAG), one of the largest minority automotive suppliers in North America. She also served in a variety of Human Resource roles at Lear Corporation. Jackie has a BS in Human Resources Management from Oakland University and an MS in Human Resources Management from Central Michigan University.
- Ken Schafer - Director of Strategic Purchasing & Materials Management. Ken comes to Supreme with a lengthy background in materials management and global sourcing. He recently served as Director of Global Supply Chain for Wabash Technologies (formerly part of DriveSol Worldwide), and in a variety of manufacturing and materials management roles at Visteon Corporation. Ken has a BS in Production Operation Management and Procurement & Material Logistics from Bowling Green University and an MS in Manufacturing Management from Kettering University.