Jason Industries Announces Closing of Asset Sales
October 03 2017 - 8:00AM
Jason Industries, Inc. (NASDAQ:JASN) (NASDAQ:JASNW) (the "Company"
or "Jason Industries") today announced that it has completed the
previously announced sale of its Acoustics European operations
during the third quarter.
The Acoustics European operations were sold for a gross sales
price of $10 million, with $7 million of net cash proceeds after
related foreign debt retirement and closing costs. The divestiture
exited the Acoustics segment from approximately $30 million of
annual revenue that was dilutive to the Acoustics business, driving
margin expansion and a focus on growth in the core North American
automotive market. The Company’s 2017 guidance reflects the
expected impact from the divestiture.
In addition, the Company announced the completed sale of the
Finishing manufacturing facility in Richmond, Virginia as part of
the Company’s previously announced consolidation of manufacturing
operations into an existing Finishing facility in Richmond,
Indiana. The sale of the facility generated $2.1 million in net
proceeds, which will fund pre-tax restructuring charges of
approximately $1.7 million related to the facility consolidation.
The facility consolidation will achieve annual run-rate cost
savings of $0.6 million beginning in the first quarter of 2018.
Brian Kobylinski, the Company’s President and Chief Executive
Officer, commented, “We are pleased with our increasing degree and
pace of execution. The third quarter Acoustics Europe divestiture
allows our team to focus on the business’s core North American
automotive market and the Virginia real estate sale will ensure a
rapid completion of our Finishing operations consolidation project.
Monetizing these non-core assets strengthens our balance sheet and
supports our goal of reducing leverage.”
To learn more about Jason Industries, please visit our website,
investors.jasoninc.com.
About Jason Industries, Inc.
The Company is the parent company to a global family of
manufacturing leaders within the finishing, components, seating and
automotive acoustics markets, including Osborn (Richmond,
Ind. and Burgwald, Germany), Metalex (Libertyville,
Ill.), Milsco (Milwaukee, Wis.), and Janesville Acoustics
(Southfield, Mich.). Headquartered in Milwaukee, Wis., Jason
employs more than 4,300 people in 13 countries. To learn more,
please visit www.jasoninc.com.
Contact Information
Investor Relations
Chad Paris
investors@jasoninc.com
414.277.2007
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