RUNI Reunion Industries Inc (CE)

Reunion Industries, Inc. (OTC:RUNI) announced that, on February 29, 2008, it entered into an Asset Purchase Agreement to sell the business and substantially all of the assets and liabilities of its pressure vessels division to an affiliate of Everest Kanto Cylinder Ltd., for cash consideration, subject to adjustment, of $64.25 million to be paid at closing. Reunion was advised on this transaction by Lincoln International. Reunion Industries is currently operating as "debtor-in-possession" under the jurisdiction of the United States Bankruptcy Court for the District of Connecticut, Bridgeport division, and such sale will require Bankruptcy Court approval. The transaction is also subject to higher and better offers being made for the division in the bankruptcy proceeding. The Company anticipates that such Bankruptcy Court approval process will take approximately 4 to 6 weeks. Reunion�s pressure vessels division, located in McKeesport, PA, manufactures and sells large seamless pressure vessels for the containment and transportation of pressurized gasses. The buyer is committed to employing all of the existing employees and intends to operate and grow the business at its present facility. Reunion President Kimball Bradley stated in his comments on the sale: �This divestiture is in the best interests of everyone connected with the Company, including its employees, customers, creditors and shareholders.� Reunion intends to emerge from Chapter 11 after the completion of the sale. Reunion Industries manufactures and markets a broad range of metal products and parts, including seamless steel pressure vessels, fluid power cylinders and metal bar grating. Reunion Industries is headquartered at 11 Stanwix Street, Suite 1400, Pittsburgh, PA, 15222. This press release contains forward-looking statements as defined by Section 21E of the Securities Act of 1934, as amended, concerning the Company�s sale of assets. These forward looking statements are subject to a number of factors which could cause actual results to differ materially from these expectations, some of which are beyond the control of the Company. Additional information on potential factors and risks that could affect the Company�s future operations is contained in the Company�s reports and filings with the Securities and Exchange Commission.