Oct 31 2008
Material Sciences Corporation , a leading provider of material-based solutions for acoustical and coated applications, announced today that it entered into agreements to sell its coil coating manufacturing facility in Morrisville, Pennsylvania, and select equipment, supplies and inventory.
"The sale of the Morrisville factory is an important step in restructuring Material Sciences to increase focus on higher value segments of the coated metal and acoustical markets," said Clifford D. Nastas, chief executive officer for Material Sciences. "Coil coating will remain a very important part of our business mix and some proceeds from this transaction will be used to supplement our investment in facilities and technology to bring innovative high-value solutions and best-in-class coated products to our customers."
MSC has agreed to sell the coil coating factory building and real estate in Morrisville, Pennsylvania, to K. MATKEM of Morrisville, LP, a Pennsylvania limited partnership. The purchase price of $4.6 million for the real estate is subject to adjustment for real estate taxes, utility charges and assessments for municipal improvements. The price includes a $1 million deposit previously paid to Material Sciences that was recorded in accrued expenses in the company's balance sheet for the period ending August 31, 2008.
Brightsmith, LLC, a Delaware limited liability company, has agreed to purchase related factory equipment for $4.5 million. Brightsmith may also buy inventory and supplies which it selects after the closing and is estimated to be worth $1.5 million. The total purchase price will also be reduced by the amount of accrued but unused vacation, personal or sick time for any of MSC's employees hired by the buyer, which obligations will be assumed by Brightsmith at the closing.