CLEVELAND, Feb. 2 /PRNewswire-FirstCall/ -- Hawk Corporation (Amex:
HWK) announced today that the Company has completed the sale of its
precision components segment to an entity formed by Saw Mill Capital
Partners, L.P. and certain members of the segment's management team for
approximately $94.2 million consisting of $93.5 million in cash and the
assumption by Saw Mill of $0.7 million in debt. The cash portion of the
purchase price includes proceeds from a preliminary working capital
adjustment which remains subject to further adjustment by the parties. Hawk
intends to use the proceeds of the transaction for growth opportunities in
the Company's friction products and performance racing segments either
internally or through acquisitions, to retire debt and for general
corporate purposes, including the possibility of a limited stock buy-back,
the details of which will be subsequently announced if Hawk determines to
pursue a stock buy-back.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001129/HWKLOGO )
The precision components segment will be reflected as a discontinued
operation in the Company's December 31, 2006 financial results.
The Company
Hawk Corporation is a leading worldwide supplier of highly engineered
products. Its friction products group is a leading supplier of friction
materials for brakes, clutches and transmissions used in airplanes, trucks,
construction and mining equipment, farm equipment, recreational and
performance automotive vehicles. The Company's performance racing group
manufactures clutches and gearboxes for motorsport applications and
performance automotive markets. Headquartered in Cleveland, Ohio, Hawk has
approximately 1,100 employees at 11 manufacturing, research, sales and
administrative sites in 5 countries.
Saw Mill Capital Partners, L.P.
Saw Mill Capital Partners, L.P. is an investment fund managed by Saw
Mill Capital LLC, a middle market private equity firm founded in 1997 that
acquires manufacturing and service companies with enterprise values of $25
to $150 million. To learn more about Saw Mill Capital, visit their website
at http://www.sawmillcapital.com.
Forward Looking Statements
This press release includes forward-looking statements concerning the
use of proceeds of the sale of the Company's precision components segment,
the possibility of a stock buy-back, the repayment of debt and other
statements that involve risks and uncertainties. These forward-looking
statements are based upon management's expectations and beliefs concerning
future events. Forward-looking statements are necessarily subject to risks,
uncertainties and other factors, many of which are outside the control of
the Company that could cause actual results to differ materially from such
statements. These risks, uncertainties and other factors include, but are
not limited to, decisions by the Company regarding the use of proceeds from
the sale, acquisition opportunities, the satisfaction of limitations on the
use of proceeds contained in the Company's financing arrangements and
market conditions. Reference is made to Hawk's filings with the Securities
and Exchange Commission, including its annual report on Form 10-K for the
year ended December 31, 2005, its quarterly reports on Form 10-Q, and other
periodic filings, for a description of other factors that could cause
actual results to differ materially from those in the forward-looking
statements. Any forward- looking statement speaks only as of the date on
which such statement is made, and the Company undertakes no obligation to
update any forward-looking statement, whether as a result of new
information, future events or otherwise.
Hawk Corporation is online at: http://www.hawkcorp.com
SOURCE Hawk Corporation
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Related links:
http://www.hawkcorp.com
http://www.sawmillcapital.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20001129/HWKLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Ronald E. Weinberg, Chairman & CEO,
+1-216-861-3553, or Joseph J. Levanduski, CFO, +1-216-861-3553,
both of Hawk Corporation
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