|Standex Broadens Cooking Solutions Platform with Acquisition of Tri-Star Brand|
SALEM, N.H., Oct 25, 2010 (BUSINESS WIRE) --
Standex International Corporation(NYSE:SXI) today announced that it has broadened its cooking solutions product offerings with the acquisition of the Tri-Star line of primary cooking product offerings, including ranges, fryers, griddles, convection ovens, salamanders, char broilers and hot plates. These acquired assets, which reported a profit on $5.5 million in sales during the trailing 12 months, are expected to be accretive to Standex's earnings on a GAAP basis in the first full year of ownership, but will be nominally dilutive to earnings in the current fiscal year ending June 30, 2011 due to the impact of purchase accounting and acquisition-related expenses.1
"Standex's acquisition of the Tri-Star brand fits squarely with our strategy to acquire assets that enable our Food Service Equipment Group to offer a more complete cooking solutions product offering," said Standex President and CEO Roger Fix. "The Tri-Star line affords us the opportunity to expand our primary cooking product offering, including high-quality restaurant-series and value-series range platforms along with important cooking equipment accessories. In addition to being the third-largest cooking product segment, ranges are seen as the focal point of the commercial kitchen. As a result, we see entering the free standing range market as a strategic imperative. We look forward to continuing to consolidate the market and to taking an increasingly greater leadership position in the food service equipment industry." 1
"We see significant opportunities to accelerate the growth of the Tri-Star brand," said Cooking Solutions Group President E.J. Morrow. "Our customers have been requesting a wider breadth of primary cooking equipment from Standex, and we now can offer them a quality range platform that thus far has had limited market exposure. We plan to use the distribution channels for our current Bakers Pride, APW Wyott and BevLes brands to generate sales for our new products.1 We also see potential to bring more value to our relationships with key distribution partners and large national accounts.1 Finally, Tri-Star products, such as open pot fryers and other key traditional cooking accessories, enable us to fill gaps in our cooking product line to better serve the market."1
"We believe there also are opportunities to enhance profitability through cost synergies,"1 added Morrow. "For example, we plan to leverage our existing food service equipment industry relationships and our strong offshore sourcing capabilities, as well as rationalize select redundant product areas."1
All Tri-Star products maintain the required foodservice industry agency certifications both domestically and internationally.
About Standex's Food Service Equipment Group
The Food Service Equipment Group (FSEG) is a broad-line manufacturer of commercial food service equipment, including walk-in coolers and freezers, refrigerated, non-refrigerated and hot display cabinets and storage systems, commercial ovens, rotisseries and cooking equipment, bakery and deli display cases, hot food counter-top products, patient feeding systems, rotary vane pumps and stainless steel fabrication, millwork and solid surface stonework. The majority of the FSEG businesses are grouped into two divisions, Standex Cooking Solutions Group and Standex Refrigerated Solutions Group. FSEG enjoys market leadership positions and strong brand recognition in the food service industry with each of its companies: American Foodservice, APW Wyott, Bakers Pride, BKI, Federal Industries, Kool Star, Master-Bilt, Nor-Lake, Inc. and Procon. The group employs over 1,500 with manufacturing facilities in Ireland, Mexico, Mississippi, South Carolina, Tennessee, Wisconsin and Wyoming. In addition to the U.S., FSEG has an established presence in Europe and is developing or expanding distributor relationships in Africa, Asia, Australia and South America.
Standex International Corporation is a multi-industry manufacturer in five broad business segments: Food Service Equipment Group, Air Distribution Products Group, Engineering Technologies Group,Engraving Group and the Electronics and Hydraulics Group with operations in the United States, Europe, Canada, Australia, Singapore, Mexico, Brazil, India and China. For additional information, visit the Company's website at www.standex.com.
1 Safe Harbor Language
Statements in this news release include, or may be based upon, management's current expectations, estimates and/or projections about Standex's markets and industries. These statements are forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may materially differ from those indicated by such forward-looking statements as a result of certain risks, uncertainties and assumptions that are difficult to predict. Among the factors that could cause actual results to differ are uncertainty in conditions in the financial and banking markets, general domestic and international economy including more specifically increases in raw material costs, the ability to substitute less expensive alternative raw materials, the ability to continue to successfully implement productivity improvements, increase market share, access new markets, introduce new products, enhance our presence in strategic channels, the successful expansion and automation of manufacturing capabilities and diversification efforts in emerging markets, the ability to continue to achieve cost savings through lean manufacturing, cost reduction activities, and low cost sourcing, effective completion of plant consolidations and the other factors discussed in the Annual Report of Standex on Form 10-K for the fiscal year ending June 30, 2010, which is on file with the Securities and Exchange Commission, and any subsequent periodic reports filed by the Company with the Securities and Exchange Commission. In addition, any forward-looking statements represent management's estimates only as of the day made and should not be relied upon as representing management's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company and management specifically disclaim any obligation to do so, even if management's estimates change.
SOURCE: Standex International Corporation
Standex International Corporation