Amcast Agrees to Sell Flow Control Assets

Company under pressure to reduce debt

Amcast Industrial Corp., Dayton, OH, has agreed to sell most of the assets of its Flow Control division to a U.S. subsidiary of Aalberts Industries N.V., a Dutch corporation. The transaction is subject to regulatory approval and customary closing conditions. The closing is expected within 30 days.

Terms of the sale were not released. Proceeds will be used to reduce Amcast’s considerable debt.

As of its June 29 third-quarter (2004) earnings statement, Amcast carried debts totaling $172.7 million. The company indicated it remained under obligation to refinance its bank debt and senior notes or “sell substantially all of its assets by September 1, 2004.”

The sale agreement includes the Elkhart Plumbing operations in Elkhart, IN, and Fayetteville, AR; Elkhart Industrial, Geneva, IN; and Amcast Industrial Ltd., Burlington, ON.

Amcast Industrial Corp. is organized into two divisions serving automotive, construction, and industrial sectors: the brand-name Flow Control Products are marketed nationwide; the Engineered Components division supplies original equipment manufacturers.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish