RUNI Reunion Industries Inc (CE)

Reunion Industries, Inc. (Pink Sheets:RUNI) announced that, on April 18, 2008, it completed the sale of the business and substantially all of the assets and liabilities of its pressure vessels division to subsidiaries of Everest Kanto Cylinder Ltd., for cash consideration of $66.3 million, subject to a post-closing adjustment based on a closing balance sheet to be prepared within 60 days of the closing date. The Company deposited $875,000 of the purchase price in a one-year escrow as security for any claims of the buyer that may arise after closing under the governing Asset Purchase Agreement. Reunion was advised on this transaction by Lincoln International. Reunion Industries is currently operating as debtor and debtor-in-possession in its case under Chapter 11 of the U.S. Bankruptcy Code, which is pending before U. S. Bankruptcy Court in Bridgeport, Connecticut. Reunion�s pressure vessels division, located in McKeesport, PA, manufactures and sells large seamless pressure vessels for the containment and transportation of pressurized gasses. Reunion President Kimball Bradley stated in his comments on the sale that he was very pleased that the buyer was employing all of the existing employees in the McKeesport plant and that the buyer expressed its intent to operate and grow the business in this facility. Mr. Bradley added that he considers this sale to be in the best interests of everyone connected with the Company, including its employees, customers, creditors and shareholders. 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.