Nu Horizons Announces The Sale Of Its Electronic Manufacturing
Services Subsidiary
MELVILLE,
NY - (August 23, 2001) - Nu Horizons Electronics Corp.
(Nasdaq/NM: NUHC), a leading distributor of active and
passive components and a provider of contract electronic
manufacturing (CEM) services, today announced that it
closed on the sale of the operations of its Nu Visions
Manufacturing Inc. subsidiary. Nu Visions' operations
were sold to an affiliate of Golden Gate Capital, a $700
million private equity firm based in San Francisco and
to certain members of the current Nu Visions management
team. Nu Visions Manufacturing Inc. (located in Springfield,
Mass.) accounts for approximately twelve (12) percent
of Nu Horizon's total sales.
The
buyer is purchasing all of the assets and assuming all
of the trade payables of Nu Visions as of the closing
date. The selling price is approximately $31,500,000 consisting
of approximately $29,500,000 in cash and $2,000,000 in
subordinated debt. Nu Visions' estimated pre tax profit
resulting from the transaction is expected to be approximately
$9,000,000 before certain expenses and other charges related
to the transaction.
Arthur
Nadata, President and CEO of Nu Horizons, said, "The
divestiture of Nu Visions will allow us to focus all of
our efforts on our core business of distributing semiconductors
and passive electronic components. In addition, the sale
eliminates a potential conflict for our core component
business arising from the substantial sales relationships
that Nu Horizons enjoys with a large number of CEMs that
could view Nu Visions as a competitor, especially given
Nu Visions' continuing growth and prosperity."
Nadata
concluded, "I would like to emphasize that the divestiture
of Nu Visions was and is in no way connected to the current
electronic industry downturn. Negotiations were underway
long before the current market conditions became evident
and Nu Visions has continued to evidence strong year over
year sales performance year to date".
About Nu Horizons
Nu
Horizons is a national distributor of high technology
electronic components, which provide innovative, total
semiconductor solutions through products and technologies
that are faster, smaller and lower powered. Nu Horizons
was established in 1982 and currently has 34 branch and
subsidiary offices located in the U.S., Canada, England
and Singapore. For more information, visit the Nu Horizons'
home page at http://www.nuhorizons.com.
Except
for historical information contained herein, the matters
set forth in this news release are forward looking statements
that involve certain risks and uncertainties that could
cause actual results to differ from those in the forward-looking
statements. Potential risks and uncertainties include
such factors as the level of business and consumer spending
for electronic products, the amount of sales of the Company's
products, the competitive environment within the electronic
industry, the ability of the Company to continue to expand
its operations, the level of costs incurred in connection
with the Company's expansion efforts and the financial
strength of the Company's customers and suppliers. Investors
are also directed to consider other risks and uncertainties
discussed in documents filed by the Company with the Securities
and Exchange Commission.
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