TransPro, Inc. (NYSE: TPR) announced today the completion of its previously announced sale of the Crown specialty metal fabrication division to Leggett & Platt, Incorporated in a $37.5 million transaction.
As a result of this sale, TransPro will record a pre-tax gain of approximately $9 million in the second quarter. After taxes and transaction costs, the Company will use the net proceeds to reduce its debt by approximately $30 million. The Company expects the decrease in debt to save over $2 million in annual pre-tax interest expense.
Hank McHale, President and Chief Executive Officer, commented, “We are pleased to have closed the deal on the sale of Crown, which is consistent with our stated business strategy to commit more resources to our heating and cooling systems businesses. We are committed to becoming a major player in the $600 million A/C Parts Aftermarket, as well as aggressively selling and marketing our traditional heating and cooling system products and reducing costs. Our stronger financial position as a result of this transaction will further enable TransPro to increase its focus on the heating and cooling systems businesses, particularly the Aftermarket, and significantly improve the Company’s capacity for growth.”
Goldsmith, Agio, Helms & Lynner, Ltd. served as financial advisor to TransPro in the transaction.
TransPro, Inc. is a manufacturer and supplier of heat transfer components and systems for a variety of Aftermarket and OEM automotive, truck and industrial applications.
Statements included in this news release which are not historical in nature are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company’s Annual Report on Form 10-K contains certain detailed factors that could cause the Company’s actual results to materially differ from forward- looking statements made by the Company. In particular, statements relating to the future financial performance of the Company are subject to business conditions and growth in the general economy and automotive and truck business, the impact of competitive products and pricing, changes in customer product mix, failure to obtain new customers or retain old customers or changes in the financial stability of customers, changes in the cost of raw materials, components or finished products and changes in interest rates.