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Grand Rapids, MI (April 23, 2002) - Clarion Technologies, Inc. (OTCBB: CLAR.OB) announced today that it has signed a definitive agreement to sell its manufacturing facility located in Montpelier, Ohio to CK Technologies, LLC, a joint venture between Cascade Engineering of Grand Rapids, Michigan and plant management.
The terms of the sale provide for a purchase price of $12,325,000 plus the value of net working capital, estimated to be approximately $750,000. The closing of the transaction is subject to financing, as well as other conditions, and is expected to close shortly.
John Brownlow, VP Sales commented, "We expect the sale of the Montpelier facility to allow Clarion to focus resources on its primary markets, consumer products and automotive, providing engineering and manufacturing expertise to meet and exceed the requirements of our customer base."
William Beckman, President for Clarion commented, "We believe the sale of the Montpelier facility is truly a win-win situation for all parties involved. CK Technologies has exciting plans for future growth in the facility, including a strong focus on further developing the truck market. We believe this will provide opportunities for the associates in Montpelier. Clarion will continue to have access to the heavy tonnage capacity in Montpelier, without the capital investment required to maintain the operation."
Beckman further commented, "The sale of this facility is another significant step by Clarion to improve its financial strength. Upon closing the transaction, Clarion will be able to complete a substantial pay down on its senior debt. The sale will also provide working capital funding. We expect that these moves will enable us to focus our efforts on our core capabilities in the consumer goods and automotive markets and to further strengthen our relationships with our customers and suppliers in these markets."
Beckman added, "The completion of this transaction, combined with continued operational improvements increase our confidence as we enter the rest of 2002. We have made it through the challenges of 2001 and are now clearly focused on the future of Clarion and increasing our ability to exceed the expectations of our customers and grow the organization. We believe Clarion is now positioned to capitalize on its opportunities."
After completion of the sale, Clarion Technologies, Inc. will operate four manufacturing facilities in Michigan and South Carolina with approximately 145 injection molding machines ranging in size from 55 to 1500 tons of clamping force. The Company's headquarters are located in Grand Rapids, Michigan.
For further information, contact Terri Streelman at (616) 233-6680.
With the exception of historical factual information, the statements made in this press release include forward-looking statements. These statements are based upon current expectations and are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. Such forward-looking statements involve certain known and unknown assumptions, risks and uncertainties that could cause actual result to differ materially from those included in or contemplated by the statements. These assumptions, risks and uncertainties include, but are not limited to our expectations regarding future performance, including the first and second quarters of fiscal 2003, our ability to execute our long-term strategy and those discussed or indicated in the Company's Annual Report on Form 10-K for the year ended December 29, 2001 and in all documents filed by the Company with the Securities and Exchange Commission. The Company disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
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