The Eastern Company Further Streamlines its Businesses with the Sale of Sesamee Mexicana

Rhea-AI Summary

The Eastern Company (NASDAQ:EML) announced the divestiture of its Sesamee Mexicana and Eberworld businesses as part of its strategy to streamline operations and enhance growth potential. The existing management of Sesamee acquired 100% of the companies' shares, although the transaction terms remain undisclosed. This sale follows the earlier divestiture of Canadian Commercial Vehicles and marks Eastern’s exit from the custom-engineered composite panels market. CEO August Vlak emphasized that this move aims to fortify operational margins and focus on core business segments.

Positive

• Streamlined portfolio focused on larger business segments to enhance growth.
• Exit from non-core market (custom-engineered composite panels) may lead to improved focus and efficiency.

Negative

• None.

NAUGATUCK, CT / ACCESSWIRE / December 4, 2020 / The Eastern Company ("Eastern" or the "Company") (NASDAQ:EML), an industrial manufacturer of unique engineered solutions serving industrial markets, today announced it sold its Sesamee Mexicana, S.A. DE C.V. ("Sesamee") and related Eberworld, S.A. DE C.V. ("Eberworld") businesses.

August Vlak, Eastern's President & CEO, said that "the divestiture of Sesamee and Eberworld 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, which we closed earlier this year, and Sesamee, Eastern has now exited the custom-engineered composite panels market."

Sesamee is based in Lerma, Mexico. The existing management team of Sesamee acquired 100 percent of Sesamee and Eberworld's outstanding shares. Terms of the transaction were not disclosed.

About The Eastern Company

The Eastern Company manages industrial businesses that design, manufacture and sell unique engineered solutions to industrial markets, focusing on industries that offer long-term macroeconomic growth opportunities. The Company operates across three reporting segments -- Industrial Hardware, Security Products and Metal Products -- 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.

Safe Harbor for Forward-Looking Statements

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 "believes," "intends", "continues," "reflects," "plans," "anticipates," "expects," 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. Among 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 impact of the ongoing COVID-19 pandemic, including the impact of shutdowns and other restrictions imposed in response to COVID-19 on our supply chain and production and consumer demand for our products, 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.

Investor Relations Contacts

The Eastern Company
August Vlak or John L. Sullivan III
203-729-2255

SOURCE: The Eastern Company

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https://www.accesswire.com/619503/The-Eastern-Company-Further-Streamlines-its-Businesses-with-the-Sale-of-Sesamee-Mexicana

FAQ

What businesses did The Eastern Company sell recently?

The Eastern Company recently sold its Sesamee Mexicana and Eberworld businesses.

Why did The Eastern Company divest Sesamee and Eberworld?

The divestiture aims to streamline operations and focus on larger, more profitable business segments.

Who acquired Sesamee and Eberworld?

The existing management team of Sesamee acquired 100% of its and Eberworld's outstanding shares.

What was the impact of the sale on The Eastern Company's market focus?

The sale allows The Eastern Company to exit the custom-engineered composite panels market and enhance its operational focus.

What is the stock symbol for The Eastern Company?

The stock symbol for The Eastern Company is EML.