ELK GROVE VILLAGE, ILLINOIS, Oct. 30 /PRNewswire-FirstCall/ -- 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.
The sale of the property and related equipment is expected to close simultaneously on or after December 1, 2008.
About Material Sciences
Material Sciences Corporation is a leading provider of material-based solutions for acoustical and coated applications. MSC uses its expertise in materials, which it leverages through relationships and a network of partners, to solve customer-specific problems. The Company's stock is traded on the New York Stock Exchange under the symbol MSC.
COMPANY CONTACT: James M. Froisland Senior Vice President, Chief Financial Officer, Chief Information Officer and Corporate Secretary 847-718-8020 MEDIA CONTACT: Katie Wood Znameroski Edelman 312-240-2827
