MILWAUKEE, Oct. 03, 2017 (GLOBE NEWSWIRE) -- Jason Industries, Inc. (NASDAQ:JASN) (NASDAQ:JASNW) (the "Company" or "Jason Industries") today announced that it has completed the previously announced sale of its Acoustics European operations during the third quarter.
The Acoustics European operations were sold for a gross sales price of $10 million, with $7 million of net cash proceeds after related foreign debt retirement and closing costs. The divestiture exited the Acoustics segment from approximately $30 million of annual revenue that was dilutive to the Acoustics business, driving margin expansion and a focus on growth in the core North American automotive market. The Company’s 2017 guidance reflects the expected impact from the divestiture.
In addition, the Company announced the completed sale of the Finishing manufacturing facility in Richmond, Virginia as part of the Company’s previously announced consolidation of manufacturing operations into an existing Finishing facility in Richmond, Indiana. The sale of the facility generated $2.1 million in net proceeds, which will fund pre-tax restructuring charges of approximately $1.7 million related to the facility consolidation. The facility consolidation will achieve annual run-rate cost savings of $0.6 million beginning in the first quarter of 2018.
Brian Kobylinski, the Company’s President and Chief Executive Officer, commented, “We are pleased with our increasing degree and pace of execution. The third quarter Acoustics Europe divestiture allows our team to focus on the business’s core North American automotive market and the Virginia real estate sale will ensure a rapid completion of our Finishing operations consolidation project. Monetizing these non-core assets strengthens our balance sheet and supports our goal of reducing leverage.”
To learn more about Jason Industries, please visit our website, investors.jasoninc.com.
About Jason Industries, Inc.
The Company is the parent company to a global family of manufacturing leaders within the finishing, components, seating and automotive acoustics markets, including Osborn (Richmond, Ind. and Burgwald, Germany), Metalex (Libertyville, Ill.), Milsco (Milwaukee, Wis.), and Janesville Acoustics (Southfield, Mich.). Headquartered in Milwaukee, Wis., Jason employs more than 4,300 people in 13 countries. To learn more, please visit www.jasoninc.com.