2/4/2004 - Measurement Specialties, Inc. (AMEX: MSS), a designer and manufacturer of sensors and sensor-based consumer products, announced it has signed a definitive asset purchase agreement to sell assets associated with its Thinner branded bathroom and kitchen scale business to Conair Corporation for $12.7 million (subject to certain escrow, closing adjustments and offsets). Measurement Specialties sells Thinner scales direct to retailers, predominately in the US and Canada. The transaction funded today.
Under the terms of the agreement, Conair Corporation acquired certain assets associated with the sale of branded bathroom and kitchen scales, including worldwide rights to the Thinner brand name and exclusive rights to the Thinner designs in North America, for $12.7 million. $2.2 million of the purchase price will be released based on the final inventory reconciliation, as well as the fiscal year 2004 sales meeting certain minimum thresholds. The Company will continue to sell tire gauges under the Accutire brand, as well as OEM scales. The Thinner branded business represents approximately $15 million in annual net sales.
“This is an important step in our continued strategic alignment to an all-OEM model, both in the sensor and consumer divisions” commented Company CEO, Frank Guidone. Guidone continues, “Having both a branded and OEM consumer scale business has created some channel conflicts historically, and we are thrilled to see the business end up in such capable hands as Conair. We will discuss the transaction in more detail in the upcoming third quarter earnings call.”
Mark Cappiello, Vice President & General Manager - Consumer Product Division, added, “In addition to the private branded scales that we currently manufacture for Conair, we will also produce the Thinner branded scales for them. Going forward, we will focus on developing new consumer product opportunities, strengthening our tire pressure gauge business and continue our efforts in the design, development and manufacturing of innovative scale products for our worldwide base of OE customers."
A conference call will be held on Thursday, February 5, 2004 beginning at 2:00 PM EST. To participate, please dial 888 428-4471 prior to the start time. International callers should dial 651 291-0900. A recording of the call will be available for 30 days by dialing 800 475-6701 and entering access code 719735. The call will be simultaneously broadcast over the Internet and available for 30 days thereafter at www.vcall.com.
Measurement Specialties is a designer and manufacturer of sensors, and sensor-based consumer products. Measurement Specialties produces a wide variety of sensors that use advanced technologies to measure precise ranges of physical characteristics, including pressure, motion, force, displacement, angle, flow, and distance. Measurement Specialties uses multiple advanced technologies, including piezoresistive, application specific integrated circuits (ASICs), micro-electromechanical systems (MEMS), piezopolymers, and strain gages to allow their sensors to operate precisely and cost effectively.
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