HUNTSVILLE, Ala., July 8, 2008 (PRIME NEWSWIRE) -- Wolverine Tube, Inc. (OTCBB:WLVT) announced today the sale of its Canadian plumbing tube unit for US $42 million in cash. Steven S. Elbaum, Chairman of Wolverine, stated, "The sale of this unit is in line with Wolverine's strategy of focusing its business and capital on the development and sale of value added, energy efficient heat transfer tubing, fabricated assemblies and metal joining products to market leading customers. Additionally, net proceeds from the sale strengthen Wolverine's balance sheet and position it for attractive long-term global growth opportunities in its core business. Wolverine's net debt is approximately $133 million after giving effect to the sale, down from $264 million at June 30, 2007. Net debt is expected to decline below $100 million by year-end as a result of improved working capital management and seasonal factors.
"With approximately $850 million in annual revenues (post the announced sale) in its core business and as a key supplier to market leaders, Wolverine is better positioned to profitably grow, particularly as the overall economic climate improves in 2009 and beyond."
Harold M. Karp, Wolverine's President and Chief Operating Officer, commented, "Wolverine is now keenly focused on operations that will generate the products and performance improvements for our strategic customers and markets. We will continue to invest in those core operations to lower our cost and deliver best in class performance and energy efficient products to our customers."
ABOUT WOLVERINE TUBE, INC.
Wolverine Tube, Inc. is a world-class quality partner, providing its customers with copper and copper alloy tube, fabricated products and metal joining products. Internet addresses: http://www.wlv.com and http://www.silvaloy.com.
FORWARD-LOOKING STATEMENTS
All statements in this press release other than statements of historical fact are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in this press release. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligations to release publicly any update or revision to any forward-looking statement contained herein if there are any changes in conditions or circumstances on which any such forward-looking statement is based.