Brief: Insteel Industries Buys Assets Of Strand-Tech Manufacturing In Deal For $22.5 Million

Insteel Industries

17/03/2020 10:35

March 17 (Reuters) - Insteel Industries Inc  IIIN.O :
    * INSTEEL INDUSTRIES ACQUIRES ASSETS OF STRAND-TECH
MANUFACTURING
    * INSTEEL INDUSTRIES INC - DEAL FOR $22.5 MILLION
    * INSTEEL INDUSTRIES INC - TRANSACTION WAS FUNDED FROM CASH
ON
HAND
    * INSTEEL INDUSTRIES INC - INSTEEL PLANS TO CLOSE
SUMMERVILLE
FACILITY
    * INSTEEL INDUSTRIES INC - CONSOLIDATION OF FACILITIES IS
EXPECTED
TO RESULT IN ELIMINATION OF UP TO 42 POSITIONS AT SUMMERVILLE
FACILITY
    * INSTEEL INDUSTRIES INC - PLANS TO MOVE MOST OF EQUIPMENT
TO
OTHER 3 PC STRAND PRODUCTION FACILITIES LOCATED IN GALLATIN,
HOUSTON AND SANDERSON
    * INSTEEL INDUSTRIES INC - SUMMERVILLE EMPLOYEES WILL BE
OFFERED
EMPLOYMENT AT INSTEEL'S OTHER FACILITIES
    * INSTEEL INDUSTRIES INC - IT IS ANTICIPATED THAT OPERATIONS
AT
SUMMERVILLE FACILITY WILL CEASE BY END OF Q3 OF FISCAL 2020
    * INSTEEL INDUSTRIES INC - EXPECTS TO RECORD A RESTRUCTURING
CHARGE OF APPROXIMATELY $1.8 MILLION IN CONNECTION WITH CLOSURE
OF FACILITY
    * INSTEEL INDUSTRIES INC - EXPECTS TO RECOVER ABOUT $8
MILLION OF
INITIAL INVESTMENT IN STM THROUGH SALE OF SUMMERVILLE FACILITY

Source text for Eikon:  ID:nPn4Qc5CPa 
Further company coverage:  IIIN.O 

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