Brady Corporation (NYSE: BRC) (''Brady''), a world leader in identification solutions, today announced that it has reached an agreement to sell its Die-Cut business to Boyd Corporation, a global business headquartered in Modesto, California, that specializes in custom fabricated sealing and energy management solutions.
Brady announced its intention to sell its Die-Cut business in May 2013 in order to focus on its Identification Solutions and Workplace Safety businesses. The Die-Cut business, with sales of approximately $192 million in the fiscal year ended July 31, 2013, consists of the manufacture and sale of precision converted products such as gaskets, meshes, heat-dissipation materials, antennae, dampers, filters, and similar products sold primarily to the electronics industry with a concentration in the mobile-handset and hard-disk drive industries and other traditional die-cut parts and thermal management products used in the automotive electronics and telecommunications industries. The company believes the Die-Cut business is no longer a good fit in its portfolio and that both customers and employees in that business will be better served under an owner with die-cut products as part of its core offering.
The sale of the Die-Cut business is expected to close in two steps, each subject to customary closing conditions. The first closing, which is anticipated to occur within 90 days, involves the sale of the Die-Cut business with operations in Germany, Thailand, Korea and Malaysia. The second closing, which is anticipated to occur in the fourth quarter of Brady’s fiscal year ending July 31, 2014, involves the sale of the Die-Cut business with operations in China and associated global sales support.
About Brady CorporationBrady Corporation is an international manufacturer and marketer of complete solutions that identify and protect premises, products and people. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software, and precision die-cut materials. Founded in 1914, the company has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2013, employed approximately 7,400 people in its worldwide businesses. Brady’s fiscal 2013 sales were approximately $1.15 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradycorp.com. Forward Looking Statements Certain information in this news release constitutes ''forward-looking statements.'' These forward-looking statements relate to, among other things, statements concerning the consummation of the sale of the Die-Cut business and the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, all of which are based on current expectations and assumptions that are subject to risks and uncertainties.