Urethane films maker, JPS Industries consider sale
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Urethane films maker, JPS Industries to consider sale

3:30 AM, 20th March 2012
Urethane films maker, JPS Industries to consider sale

GREENVILLE, US: During recent results announcement, JPS Industries Inc informed that the company was looking for a potential sale option. To advise the board of directors and to seek alternative strategies, the company has appointed Houlihan Lokey, as financial advisor. “Given our current performance and market positions, the board has determined that now is an appropriate time to explore potential strategic alternatives we believe may exist for JPS. We have engaged Houlihan Lokey to advise and assist the board to enhance shareholder value,” said Michael L Fulbright, Chairman, President and CEO, JPS Industries.

In September, 2011, JPS had received a conditional, unsolicited $8.00 offer (which was subsequently lowered to $7.50) from Steel Partners Holdings to acquire the company. JPS had rejected the offer citing it as inadequate and not in the best interest of shareholders. “Discussions between JPS and Steel Partners have not led to an acceptable transaction to date and the standstill agreement expired on October 14, 2011,” said Fulbright.

Considering company performance, for 2011, JPS reported sales of $190.3 million versus prior year sales of $186.7, an increase of 1.9 per cent. The company reported a net loss of $0.9 million versus net income of $3.2 million in the prior period. Excluding the effects of litigation in 2011, operating income in 2011 was $11.1 million versus $10.5 million in 2010, an increase of 5.7 per cent.

“Our 2011 operating results show solid improvement over 2010. We achieved these results despite an uncertain economic environment, which was further affected by geopolitical events that influenced supply, demand and raw material prices. Our debt has reduced over these past two years from $46 million to $29 million even as we invested in modern equipment to support our growth businesses and contributed $5 million to our pension plan,” informed Fulbright.

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