Sequa Corporation Sale of Can Machinery Business to Stolle Machinery Company, LLC
Sequa Corporation has sold its Sequa Can Machinery business and most related assets to Stolle Machinery Company, LLC for $41 million in cash. Sequa expects to report an after-tax gain of about $3.2 million from this sale in its fourth quarter results for 2004. The transaction marks Sequa's exit from the can machinery sector, though it will continue to participate in the container industry through its Precoat Metals division. The agreement is subject to standard risks and uncertainties as noted in Sequa's SEC filings.
Exhibit 2.2
Immediately Linda Kyriakou - 212 ###-###-####
Sequa Completes Sale of Can Machinery Business
New York, November 5 - Sequa Corporation (NYSE; SQAA) has completed the divestiture of its Sequa Can Machinery operation, selling the business and substantially all the assets to Stolle Machinery Company, LLC.
Sequa received cash proceeds of $41 million on the sale and expects to record an after-tax gain of approximately $3.2 million on the transaction when the company reports results for the fourth quarter ending December 31, 2004.
Sequa Can Machinery, a component of Sequa's Other Products reporting segment, produces high-speed can-forming and -decorating equipment and conducts specialty metal forming operations. With the divestiture of the can machinery business, Sequa's ongoing participation in the container industry centers on its Precoat Metals division, which coats coils of metal used to fabricate cans and can ends. Sequa's other principal operations serve the global airline industry, the international specialty chemicals market, and the graphic arts and emission control industries.
11/5/04
Note: This press release includes forward-looking statements that are subject to risks and uncertainties. A number of factors, including political, currency, regulatory and competitive and technological developments, could result in material differences between actual results and those outlined in any forward looking statements. For additional information, see the comments included in Sequa's filings with the Securities and Exchange Commission.
