COLUMBUS, Ohio--(BUSINESS WIRE)--Sept. 2, 2004--Worthington
Industries, Inc. (NYSE:WOR) announced today that it has signed a
purchase agreement to acquire the propane and specialty gas cylinder
assets of Western Industries, Inc. Western's Propane & Specialty
Cylinder Group manufactures 14.1 oz. and 16.4 oz. disposable cylinders
for hand torches, camping stoves, portable heaters and table top
grills from two locations. The revenues of this group were
approximately $50 million for the last calendar year. These assets
will be included in Worthington's Pressure Cylinders business segment.
The transaction is expected to be modestly accretive in the first
year. Under the proposed terms, Worthington will acquire Western's
cylinder assets for $64.5 million in cash.
Worthington's Chairman and Chief Executive Officer, John P.
McConnell, stated, "This transaction represents a natural extension of
our focus on value added processing of flat-rolled steel." George
Stoe, President of Worthington Cylinders, added, "The complementary
nature of the product offerings of Worthington and Western will be
beneficial to our customers and round out our already extensive
coverage of the cylinder market. While we currently manufacture a
broad range of cylinders, we do not have any product offerings in the
one pound range. "
This transaction is expected to close within thirty days subject
to normal closing conditions.
About Worthington Cylinders
Worthington Cylinders is the world's leading global supplier of
pressure cylinders, offering the most complete line of pressure
cylinder vessels in the industry, including LPG, refrigerant and
industrial gas cylinders. With annual sales of approximately $330
million, this business segment of Worthington Industries employs
nearly 2,000 people and operates seven facilities in five countries.
About Worthington Industries
Worthington Industries is a leading diversified metal processing
company with annual sales of more than $2 billion. The Columbus, Ohio,
based company is North America's premier value-added steel processor
and a leader in manufactured metal products such as automotive past
model service stampings, pressure cylinders, metal framing, metal
ceiling grid systems and laser welded blanks. The company employs
8,000 people and operates 61 facilities in 10 countries.
Founded in 1955, the company operates under a long-standing
corporate philosophy rooted in the golden rule, with earning money for
its shareholders as the first corporate goal. This philosophy, an
unwavering commitment to the customer and one of the strongest
employee/employer partnerships in American industry serve as the
company's foundation. www.WorthingtonIndustries.com
Safe Harbor Statement
The company wishes to take advantage of the Safe Harbor provisions
included in the Private Securities Litigation Reform Act of 1995 ("the
Act"). Statements by the company relating to the expected benefits of
the acquisition such as market profile and product offering and
projected timing, results and expenditures related to the acquisition;
future, estimated or expected earnings, charges, working capital,
sales, operating results, earnings per share or the earnings impact of
certain matters; pricing trends for raw materials and finished goods;
new products and markets; and other non-historical matters constitute
"forward looking statements" within the meaning of the Act. Because
they are based on beliefs, estimates and assumptions, forward-looking
statements are inherently subject to risks and uncertainties that
could cause actual results to differ materially from those projected.
Any number of factors could affect actual results, including, without
limitation: the timing, closing and changes to the terms of the
acquisition of the propane and specialty gas cylinder assets from
Western; the possibility that costs or difficulties related to the
integration of the business acquired from Western are greater than
expected and any resulting synergies following the acquisition are
lower or take longer to realize than expected; the ability to maintain
relationships with customers of the acquired business; product demand
and pricing, changes in product mix and market acceptance of products;
fluctuations in pricing, quality or availability of raw materials
(particularly steel), supplies, utilities and other items required by
operations; the ability to realize price increases, cost savings and
operational efficiencies on a timely basis; capacity levels and
efficiencies within facilities and within the industry as a whole;
financial difficulties of customers, suppliers, joint venture partners
and others with whom the company does business; the effect of
national, regional and worldwide economic conditions generally and
within major product markets, including a prolonged or substantial
economic downturn; the effect of adverse weather on facility and
shipping operations; changes in customer spending patterns and
supplier choices and risks associated with doing business
internationally, including economic, political and social instability
and foreign currency exposure; acts of war and terrorist activities;
the ability to improve processes and business practices to keep pace
with the economic, competitive and technological environment;
deviation of actual results from estimates and/or assumptions used by
the company in the application of its significant accounting policies;
level of imports and import prices in the company's markets; the
impact of governmental regulations, both in the United States and
abroad; and other risks described from time to time in filings with
the United States Securities and Exchange Commission.
CONTACT: Worthington Industries, Inc., Columbus
Cathy Mayne Lyttle, 614-438-3077
cmlyttle@WorthingtonIndustries.com
or
Allison McFerren Sanders, 614-840-3133
asanders@WorthingtonIndustries.com
SOURCE: Worthington Industries, Inc.