Brady Corporation Announces Plan to Sell its Asia-based Die-Cut Business
May 16 2013 - 8:00AM
Business Wire
Brady Corporation (NYSE: BRC) (“Brady”), a world leader in
identification solutions, today reported that it plans to sell its
Asia-based Die-Cut business. This business, with sales of $179
million during the year ended July 31, 2012, consists of the
manufacture and sale of high-performance products such as gaskets,
meshes, heat dissipation materials, antennae, dampers, filters, and
similar products sold primarily into the electronics industry with
a concentration in the mobile-handset and hard-disk drive
industries.
Brady’s Board of Directors adopted a plan of sale for the
Asia-based Die-Cut business in order to focus on its Identification
Solutions and Workplace Safety businesses. Brady will continue to
operate the business as a going concern and execute its improvement
plans while engaged in the divestiture process.
“Our Die-Cut business has shown many signs of improvement and
has recently secured several meaningful new orders,” stated Brady’s
President and Chief Executive Officer, Frank M. Jaehnert. “However,
we no longer consider this business core to our strategy and
believe that our Die-Cut customers and our employees will be better
served by being with a company where Die-Cut is a core product
offering.”
Brady 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
millions of customers in electronics, telecommunications,
manufacturing, electrical, construction, education, medical and a
variety of other industries. Brady is headquartered in Milwaukee,
Wisconsin and as of January 31, 2013 employed approximately 8,200
people at operations in the Americas, EMEA and Asia-Pacific.
Brady’s fiscal 2012 sales were approximately $1.32 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.
Brady believes that certain statements in this news release are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements related to
future, not past, events included in this news release, including,
without limitation, statements regarding Brady’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 are
forward-looking statements. When used in this news release, words
such as “may,” “will,” “expect,” “intend,” “estimate,”
“anticipate,” “believe,” “should,” “project” or “plan” or similar
terminology are generally intended to identify forward-looking
statements. These forward-looking statements by their nature
address matters that are, to different degrees, uncertain and are
subject to risks, assumptions and other factors, some of which are
beyond Brady’s control, that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. For Brady, uncertainties arise from the length or
severity of the current worldwide economic downturn or timing or
strength of a subsequent recovery; future financial performance of
major markets Brady serves, which include, without limitation,
telecommunications, manufacturing, electrical, construction,
laboratory, education, governmental, public utility, computer,
transportation; difficulties in making and integrating
acquisitions; risks associated with newly acquired businesses;
Brady’s ability to develop and successfully market new products;
changes in the supply of, or price for, parts and components;
increased price pressure from suppliers and customers; fluctuations
in currency rates versus the US dollar; unforeseen tax
consequences; potential write-offs of Brady’s substantial
intangible assets; Brady’s ability to retain significant contracts
and customers; risks associated with international operations;
Brady’s ability to maintain compliance with its debt covenants;
technology changes; business interruptions due to implementing
business systems; environmental, health and safety compliance costs
and liabilities; future competition; interruptions to sources of
supply; Brady’s ability to realize cost savings from operating
initiatives; difficulties associated with exports; risks associated
with restructuring plans; risks associated with obtaining
governmental approvals and maintaining regulatory compliance; and
numerous other matters of national, regional and global scale,
including those of a political, economic, business, competitive and
regulatory nature contained from time to time in Brady’s U.S.
Securities and Exchange Commission filings, including, but not
limited to, those factors listed in the “Risk Factors” section
located in Item 1A of Part I of Brady’s Form 10-K for the
year ended July 31, 2012. These uncertainties may cause Brady’s
actual future results to be materially different than those
expressed in its forward-looking statements. Brady does not
undertake to update its forward-looking statements.
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