DALLAS, March 9 /PRNewswire/ -- Consistent with its stated intent to
evaluate asset dispositions outside of its core refractories business, Global
Industrial Technologies, Inc. (NYSE: GIX) announced today that it has entered
into a definitive agreement for the sale of its APG Lime operations to
Chemical Lime Company, Fort Worth, TX, for $134 million, subject to
adjustments (consisting of $130.3 million in cash plus the assumption of
$3.7 million in debt). Global also announced that its Board of Directors has
authorized management to pursue a sale of Ameri-Forge, the Company's flange
and heavy equipment undercarriage manufacturing and distribution operation.
The two businesses will be accounted for as discontinued operations when
1998 results are reported later this month.
Rawles Fulgham, Global's Chairman and Chief Executive Officer, stated, "By
agreeing to sell APG Lime and commencing a process to sell Ameri-Forge, Global
is continuing on the strategic course to focus on the refractories business
and redeploy assets to further enhance shareholder value. We look forward to
completing these initiatives in the months ahead and continuing to improve our
operating performance over the course of the year."
Global expects that proceeds from the sale of APG Lime and Ameri-Forge
will be used to repay outstanding bank debt and for other corporate purposes,
including the possible repurchase of its stock from time to time in the
market. Mr. Fulgham said, "The sale of these assets is an important step in
our previously announced strategy to focus on our real strength in the
refractories business. We believe the refractories industry needs to, and
will, consolidate and we are positioning ourselves to be an important
participant in that process as we identify appropriate opportunities."
The APG Lime sale is subject to customary regulatory approval and Chemical
Lime completing its due diligence. The transaction is expected to be
completed within 60 days.
Global is a major manufacturer of technologically advanced industrial
products that support high-growth markets around the world. Products include
forged flanges; undercarriage parts for track-mounted vehicles; modular cells
for refining nonferrous metals; premium refractories for lining heat-
containing industrial vessels such as steel furnaces; raw materials used to
make refractory products; processing and recycling equipment.
Statements the Company may publish, including those in this announcement,
that are not strictly historical are "forward-looking" statements under the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Although the Company believes the expectations reflected in such
forward-looking statements are based on reasonable assumptions, it can give no
assurance that its expectations will be realized. Forward-looking statements
involve known and unknown risks which may cause the Company's actual results
and corporate developments to differ materially from those expected. Factors
that could cause results and developments to differ materially from the
Company's expectations include, without limitation, changes in manufacturing
and shipment schedules, delays in completing plant construction and
acquisitions, currency exchange rates, new product and technology
developments, competition within each business segment, cyclicity of the
markets for the products of a major segment, litigation, significant cost
variances, the effects of acquisitions and divestitures, and other risks
described from time to time in the Company's SEC reports including quarterly
reports on Form 10-Q, annual reports on Form 10-K and reports on Form 8-K.
Certain Information Concerning Participants
Global Industrial Technologies, Inc. (the "Company") and certain other
persons named below may be deemed to be participants in the solicitations of
proxies against the proposals of WHX Corporation. The participants in this
solicitation may include (i) the directors of the Company: David H. Blake,
Richard W. Vieser, Samuel B. Casey, Jr., Rawles Fulgham and Graham L. Adelman
and (ii) the following executive officers and employees of the Company: Rawles
Fulgham (Chairman and Chief Executive Officer), Graham L. Adelman (President
and Chief Operating Officer), Alfred L. Williams (Senior Vice President and
Chief Financial Officer), Donna Reeves (Vice President and Controller),
Jeanette H. Quay (Vice President, General Counsel and Secretary), James
Alleman (Vice President-Human Resources), and George Pasley (Vice President-
Communications). As of the date of this communication, none of the foregoing
participants individually beneficially own in excess of .1% of the Company's
common stock or in the aggregate in excess of 2% of the Company's common
stock.
SOURCE Global Industrial Technologies, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/422169.html or fax,
800-758-5804, ext. 422169
CONTACT:
George Pasley, V. P. Communications of Global
Industrial Technologies, Inc., 214-953-4510
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