LIBERTY CORNER, N.J., Nov. 29 /PRNewswire-FirstCall/ -- Fedders Corporation , a leading global manufacturer of air treatment products, today announced that it has signed a contract with ACE Klimatechnik GmbH of Frankfurt, Germany, for ACE to acquire from Fedders, one hundred percent of the shares of Polenz GmbH, a premier distributor of HVAC products in Germany. ACE is a subsidiary of Electra Consumer Products Ltd., an Israeli public company whose shares are traded on the Tel Aviv Stock Exchange, and which is part of the Elco Group of Companies. The purchase price is 5.5 million Euros in cash. It is anticipated that Polenz' 2006 revenue will be 17 million Euros. The companies expect the sale to be completed during 2006.
Commenting on the sale, Michael Giordano, Fedders CEO said, "The divestiture is in keeping with Fedders' plan to focus on its core markets in North America and Asia."
This news release may include forward-looking statements that are covered under the "Safe-Harbor" clause of the Private Securities Litigation Reform Act of 1995. Such statements are based upon current expectations and assumptions. Actual results could differ materially from those currently anticipated as a result of known and unknown risks and uncertainties including, but not limited to, weather and economic, political, market and industry conditions and reliance on key customers. Such factors are described in Fedders' SEC filings, including its most recently filed annual report on Form 10-K. The company disclaims any obligation to update any forward-looking statements to incorporate developments occurring after release of this announcement. Visit the Fedders investor information website at http://www.fedders.com/ to access additional information on Fedders.
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