The Eastern Company Announces the Sale of Greenwald Industries
The Eastern Company (NASDAQ:EML) has announced the divestiture of its Greenwald Industries business as part of a strategy to streamline its operations and enhance growth. President August Vlak stated that the transaction will strengthen Eastern's focus on its core businesses and improve operating margins. Proceeds from the sale will primarily be used to reduce debt, enhancing the company’s balance sheet. Eastern's ongoing efforts include reporting non-core businesses as discontinued operations. The specific terms of the transaction remain undisclosed.
- Divestiture of Greenwald Industries to streamline operations and enhance focus on core businesses.
- Proceeds will primarily be used to reduce debt, strengthening the balance sheet.
- None.
NAUGATUCK, CT / ACCESSWIRE / November 4, 2021 / The Eastern Company ("Eastern" or the "Company") (NASDAQ:EML), an industrial manufacturer of unique engineered solutions serving commercial transportation, logistics, and other industrial markets, today announced that it has sold its Greenwald Industries business ("Greenwald").
August Vlak, Eastern's President & CEO, said that "the divestiture of Greenwald is part of our ongoing work to streamline our portfolio of businesses and build scale in our largest businesses, which we believe will accelerate Eastern's growth and strengthen our operating margins. With the sale of Canadian Commercial Vehicles and Sesamee Mexicana, which we completed last year, this transaction further strengthens our focus on our three core businesses."
Mr. Vlak added, "In August this year, we announced our intent to divest our non-core businesses and began reporting these businesses as discontinued operations. We are pleased to complete this transaction today, within three months of our announcement."
Mr. Vlak concluded, "We will use most of the proceeds from this transaction to reduce our debt, further strengthening our balance sheet."
The terms of the transaction were not disclosed.
About Greenwald
Greenwald is an OEM manufacturer offering a range of payment solutions from coin-vending products to smart card systems and payment applications. The business is located in Chester, CT.
About The Eastern Company
The Eastern Company manages industrial businesses that design, manufacture and sell unique engineered solutions to niche markets, focusing on industries that offer long-term macroeconomic growth opportunities. The Company operates from locations in the U.S., Canada, Mexico, U.K., Taiwan and China. More information on the Company can be found at www.easterncompany.com.
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Statements in this document about our future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the rules, regulations and releases of the Securities and Exchange Commission. Any statements that are not statements of historical fact, including statements containing the words "would", "should", "may," "will," "believes," "estimates," "intends", "continues," "reflects," "plans," "anticipates," "expects," "potential," "opportunities" and similar expressions, should also be considered to be forward-looking statements. Readers should not place undue reliance on these forward-looking statements, which are based upon management's current beliefs and expectations. These forward-looking statements are subject to risks and uncertainties, and actual results might differ materially from those discussed in, or implied by, the forward-looking statements. The risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements include, but are not limited to, the effects of the COVID-19 pandemic, vaccination rates, the emergence of variants of COVID-19, and the measures being taken to limit the spread and resurgence of COVID-19, including supply chain disruptions, delays in delivery of our products to our customers, impact on demand for our products, reductions in production levels, increased costs, including costs of raw materials, the impact on global economic conditions, the availability, terms and cost of financing, including borrowings under credit arrangements or agreements, and risks associated with employees working remotely or operating with reduced workforce; the scope and duration of the COVID-19 pandemic, including the extent of any resurgences and the emergence of variants of COVID-19, and how quickly and to what extent normal economic activity can resume; vaccination rates; changing customer preferences, lack of success of new products, loss of customers, cybersecurity breaches, changes in competition in our markets, and increased prices for raw materials resulting from tariffs on imported goods or otherwise. There are important, additional factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including those set forth in our reports and filings with the Securities and Exchange Commission. We undertake no obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise, except as required by law.
Investor Relations Contacts
The Eastern Company
August Vlak or John L. Sullivan III
203-729-2255
SOURCE: The Eastern Company
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