Gerber Scientific, Inc. Signs Definitive Agreement to Sell Laser Marking and Engraving Business Unit to ALLTEC
(SOUTH WINDSOR, CT, AUGUST 04, 2009) Gerber Scientific, Inc. today announced that it had entered into an agreement to sell its laser marking and engraving business unit, FOBA Technology + Services GmbH (“FOBA”), to ALLTEC Angewandte Laserlicht Technologie GmbH, the laser business unit of Videojet Technologies Inc.. In accordance with the agreement, consummation of the transaction is subject to customary terms and conditions and regulatory approvals, including approval of the German merger control authority, which the Company expects will take no longer than a month. While financial terms of the transaction were not disclosed, the Company said that the proceeds from the sale would be used to reduce its outstanding debt and for general corporate purposes. RA Capital Advisors acted as financial advisor to the Company in the transaction.
“We acquired the FOBA business unit as part of our acquisition of Virtek Vision International, Inc. last year. While FOBA is an attractive laser marking and engraving business, it is not a core strategic focus for us. FOBA is, however, an ideal partner for Videojet Technologies given Videojet’s global reach and scale,” said Gerber President and CEO, Marc Giles. “For Gerber, this transaction represents one of several potential non-core/non-strategic asset sales that we have been reviewing and the proceeds from this sale will provide us with additional flexibility under our senior credit facility.”
About Gerber Scientific, Inc.
Gerber Scientific, Inc. (http://www.gerberscientific.com) is a leading international supplier of sophisticated automated manufacturing systems for the sign making, specialty graphics and packaging, apparel and flexible materials, and ophthalmic lens processing industries. Headquartered in South Windsor, Connecticut, the Company operates through four primary businesses: Gerber Scientific Products, Spandex, Gerber Technology and Gerber Coburn.
Cautionary Note Concerning Factors That May Affect Future Results
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements contained in this news release regarding the Company’s expected financial condition, results of operations, cash flows, product launches and cost reductions are forward-looking statements that involve risks and uncertainties. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, readers are referred to the Company’s filings with the Securities and Exchange Commission, including but not limited to, the information included in Gerber Scientific’s Annual Report on Form 10-K for the fiscal year ended April 30, 2008 under the headings “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Cautionary Note Concerning Factors That May Influence Future Results,” as well as information included in subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which outline certain important risks regarding the Company’s forward-looking statements. These risks include, but are not limited to, delays in the Company’s new product development and commercialization, intense competition in markets for each of the Company’s operating segments, rapid technological advances, availability and cost of raw materials, continued adverse economic and credit market conditions, volatility in foreign currency exchange rates and fluctuations in interest rates. Actual future results or events may differ materially from these forward-looking statements. The Company expressly disclaims any obligation to update any of these forward-looking statements, except as required by law.
Source: Gerber Scientific