Applica Incorporated to Explore Strategic Alternatives
28 Febbraio 2006 - 2:41PM
Business Wire
Applica Incorporated (NYSE:APN) today announced that the Board of
Directors and management of the company believe that, while ongoing
operational actions should translate into improved profitability,
following their continued review of the company's business,
products, and current strategic position, it is also now
appropriate to initiate an external process to explore strategic
alternatives to enhance shareholder value. As a result, the Board
of Directors has authorized and the company has engaged Banc of
America Securities as its financial advisor to assist the Board and
management in this process, which could include a sale or merger of
the company. "Now that our operational improvement initiatives have
been developed and are being executed, the company, with Banc of
America, intends to build on the work done over the past two years
and move forward with a robust process to explore all strategic
alternatives to enhance shareholder value," said Harry D. Schulman,
Applica's President and Chief Executive Officer. "While we believe
that Applica's business plan has the potential to deliver enhanced
shareholder value over time, the Board of Directors and I are also
enthusiastic about the opportunity to pursue strategic initiatives
to better deliver shareholder value." Applica emphasized that there
can be no assurance that any transaction will occur or, if one is
undertaken, of its potential terms or timing. Applica may not
update its progress or disclose developments with respect to
potential strategic initiatives unless the Board of Directors has
approved a definitive course of action or transaction. Applica
Incorporated and its subsidiaries are marketers and distributors of
a broad range of branded and private-label small electric consumer
goods. Applica markets and distributes kitchen products, home
products, pest control products, pet care products and personal
care products. Applica markets products under licensed brand names,
such as Black & Decker(R), its own brand names, such as
Windmere(R), LitterMaid(R), Belson(R) and Applica(R), and other
private-label brand names. Applica's customers include mass
merchandisers, specialty retailers and appliance distributors
primarily in North America, Latin America and the Caribbean.
Additional information regarding the Company is available at
http://www.applicainc.com. Certain matters discussed in this news
release are forward-looking statements. Such statements are
indicated by words or phrases such as "anticipates," "projects,"
"management believes," "Applica believes," "intends," "expects,"
and similar words or phrases. The forward-looking statements are
subject to certain risks, uncertainties or assumptions and may be
affected by certain other factors, including the follow factors: --
Applica purchases a large number of products from one supplier.
Production-related issues with this supplier could jeopardize
Applica's ability to realize anticipated sales and profits. -- The
New York Stock Exchange has notified Applica that it is not in
compliance with the NYSE's continued listing criteria. If Applica
is delisted by the NYSE, the price and liquidity of its common
stock will be negatively affected. -- Applica depends on third
party suppliers for the manufacturing of its products, which
subjects it to additional risks that could adversely affect its
business. -- Increases in costs of raw materials, such as plastics,
steel, aluminum and copper, could result in increases in the costs
of Applica's products, which will reduce its profitability. --
Applica's debt agreements contain covenants that restrict its
ability to take certain actions. Applica would face liquidity and
working capital constraints if it violates any of these covenants
and may not be able to obtain any needed refinancing on
commercially reasonable terms or at all. -- Applica's business
could be adversely affected by retailer inventory management. --
Applica depends on purchases from several large customers and any
significant decline in these purchases or pressure from these
customers to reduce prices could have a negative effect on its
business. -- Applica's business could be adversely affected by
currency fluctuations in its international operations, particularly
the Chinese yuan. -- Applica's future success requires it to
develop new and innovative products on a consistent basis in order
to increase revenues and it may not be able to do so. Other risks
and uncertainties are detailed in Applica's Securities and Exchange
Commission filings, including the Annual Report on Form 10-K for
the year ended December 31, 2004. Should one or more of these
risks, uncertainties or other factors materialize, or should
underlying assumptions prove incorrect, actual results,
performance, or achievements of Applica may vary materially from
any future results, performance or achievements expressed or
implied by the forward-looking statements. Readers are cautioned
not to place undue reliance on forward-looking statements. Applica
undertakes no obligation to publicly revise any forward-looking
statements to reflect events or circumstances that arise after the
date hereof.
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