DALLAS, May 20 /PRNewswire/ -- Global Industrial Technologies, Inc.
(NYSE: GIX) announced today that it has entered into a definitive agreement
for the sale of its Ameri-Forge unit to Tanglewood Companies LP, Houston, TX,
for $40 million in cash proceeds which Global will use to pay down debt. The
transaction is subject to customary regulatory approval and post-closing
adjustments and is expected to close within 60 days. The Company will realize
approximately $40 million in tax benefits from the transaction, which will
offset taxes payable on the sale of APG Lime and generate tax loss
carryforwards to be used against other earnings.
Global announced in March its intention to pursue a sale of Ameri-Forge as
part of its strategy of disposing of non-core businesses and focusing on its
core refractories business.
The Company noted that the expected proceeds from the planned sale are
less than the original estimate used to record the loss on disposal of
Ameri-Forge as reflected in the December 31, 1998 consolidated financial
statements. Accordingly, an additional $40 million pre-tax charge will be
made to the discontinued operations results previously reported for the first
quarter ended, March 31, 1999. There will be no change in the income from
continuing operations which, for the quarter, was $3.4 million or $0.15 per
share.
Global is a major manufacturer of technologically advanced industrial
products that support high-growth markets around the world. Products include
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.
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), Juan M. Bravo (Vice President). 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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