DOWNERS GROVE, Ill. , April 2, 2007 (PRIME NEWSWIRE) -- Elgin National Industries ("Elgin"), a leading provider of industrial equipment, specialty fastener products, and engineering/construction services, announced today that GFI Energy Ventures, LLC, through two investment funds in which it holds an interest, has acquired a majority interest in the company. Terms of the acquisition were not disclosed. The company will remain based in Downers Grove, IL.
"We are pleased to partner with Elgin and play a role in supporting the company's next phase of substantial growth in revenues and profitability," said Ian Schapiro, a Principal of GFI Energy Ventures. "Elgin's reputation for high quality products, strong engineering capabilities and responsive customer service make it an excellent platform to capitalize on opportunities arising from the long-term growth prospects of its core coal, electric generation, and oil and gas markets."
"We are very excited to be partnering with GFI," said David Hall, President and COO of Elgin. "The overall energy market prospects are robust, and we are convinced that coal-fired electric generation, which we support through engineering services, equipment, and emissions control solutions, will continue to play a leading role in world-wide electricity supply. The GFI relationship gives us substantial added capital, resources, expertise, and access to markets to continue to invest in and expand our product and service offerings to the energy markets to take advantage of these world-wide market opportunities. In our specialty fastener group of businesses, we expect that GFI's financial resources and willingness to invest in our profitable growth will help us expand our product offering and better meet our customers' needs."
The acquisition of Elgin, structured as a merger which occurred on March 29, 2007, provided for merger consideration consisting of cash, promissory notes and a contingent payment obligation. Upon the consummation of the merger the existing stockholders of Elgin ceased to hold any stock in Elgin and Elgin became a wholly-owned subsidiary of ENI Holdings, Inc.
The Indenture relating to the Company's 11% Senior Notes due 2007 (the "Notes") requires the Company following the closing of the GFI acquisition to offer to repurchase all of the Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest. This offer will be made within 20 days of the merger date of March 29, 2007.
About Elgin National Industries
Elgin National Industries, Inc. is an industry leader in the design and manufacture of industrial equipment, specialty fastener products, and engineering and construction services supporting a variety of industries including the coal and mineral processing, coal fired electric utility and oil and gas drilling industries. Elgin's products and services are used by blue-chip companies worldwide. Elgin is based in Downers Grove, Illinois.
About GFI Energy Ventures
GFI Energy Ventures LLC (www.gfienergy.com) is a private equity firm that has initiated and led over fifty investments in the energy sector over the past twelve years. GFI is the co-general partner with Oaktree Capital Management of the approximately $1.5 billion OCM/GFI Power Opportunity Funds. GFI invests exclusively in successful, profitable businesses providing the equipment, software, services, and systems needed by utilities, other energy companies, and their largest customers to generate, transmit, manage, measure and consume energy. GFI is based in Los Angeles, California.
Except for historical information contained herein, the statements in this press release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as "may," "will," "expect," "anticipate," "believe," "guidance," "estimate," "intend," "predict," and "continue" or similar words. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks and uncertainties are more fully described in the Company's Annual Report on Form 10-K for the year ended December 31, 2005 as filed with the Securities and Exchange Commission on March 30, 2006 and those references herein to the planned Merger. The Company disclaims any obligation and does not intend to update any forward-looking statements except as may be required by the securities laws.