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BLOOMFIELD HILLS, Mich.,
Dec. 22, 2011 /PRNewswire/ -- TriMas Corporation (NASDAQ: TRS) – a diversified manufacturer of engineered and applied products – announced today that the Company closed on a transaction to sell the assets of its Hi-Vol Products and Precision Tool Company subsidiaries to ARCH Global Precision LLC, a newly formed entity created by Strength Capital Partners. The sale price was
$38.6 million, plus additional contingent consideration up to
$2.5 million, based on achievement of certain levels of future financial performance. The purchase price remains subject to a net working capital adjustment, if any, to be finalized within 60 days. The transaction closed on
December 22, 2011.
"We continue to refine our business portfolio to support our strategic imperatives, including focusing on opportunities in identified growth businesses and redeploying assets to drive the highest return for stakeholders," said
Dave Wathen, president and chief executive officer of TriMas Corporation. "I am pleased that we have secured a buyer for whom the businesses will be an ideal fit."
Hi-Vol Products and Precision Tool Company's assets, liabilities and results of operations were first classified as discontinued operations effective with the Company's third quarter 2011 Form 10-Q issued on
October 27, 2011. The companies were previously part of TriMas' Engineered Components segment.
Hi-Vol Products is a supplier of tube nuts and engineered precision machined components to the automotive and industrial markets of
North America. Precision Tool Company, comprised of KEO Cutters, Richards Micro-Tool and Cutting Edge Technologies, produces a variety of specialty precision tools such as combined drills and countersinks, NC spotting drills, key seat cutters, end mills and countersinks.
Cautionary Notice Regarding Forward-looking StatementsAny "forward-looking" statements contained herein, including those relating to market conditions or the Company's financial condition and results, expense reductions, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including, but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company's business and industry, the Company's substantial leverage, liabilities imposed by the Company's debt instruments, market demand, competitive factors, supply constraints, material and energy costs, technology factors, litigation, government and regulatory actions, the Company's accounting policies, future trends, and other risks which are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2010, and in the Company's Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.