Oilgear (NASDAQ:OLGR)
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From Jun 2019 to Jun 2024
The Oilgear Company (Nasdaq/NMS:OLGR) today announced it
has completed the sale of its manufacturing facility in Leeds,
England, for 4,150,000 British pounds Sterling (approximately $7.7
million).
David A. Zuege, president and chief executive officer of Oilgear,
said the company will use the proceeds from the sale to repay a loan
from Barclays Bank of 3.2 million pounds (approximately $6.0 million)
related to the financing of the facility. Additional uses of the
proceeds include funding moving expenses, leasehold improvements and
equipment for its new leased location in Leeds and payment of capital
gains taxes. The company expects to report a gain, net of all costs,
expenses, taxes and fees of approximately $5 million on the
transaction.
"We have successfully completed the move from the former location
into our new leased facility in Leeds. The new facility will enable us
to serve our customers in the United Kingdom and Europe more
efficiently and effectively. The European market is an important
segment of our business and we look forward to further strengthening
our presence in this geographic region," said Zuege.
Oilgear has approximately 90 employees at the Leeds location.
A leader in the fluid power industry, The Oilgear Company provides
advanced technology in the design and production of unique fluid power
components and electronic controls. The company serves customers in
the primary metals, machine tool, automobile, petroleum, construction
equipment, chemical, plastic, glass, lumber, rubber and food
industries. Its products are sold as individual components or
integrated into high performance applications.
Certain matters discussed in this press release are
"forward-looking statements" intended to qualify for the safe harbors
from liability established by the Private Securities Litigation Reform
Act of 1995. These forward-looking statements can generally be
identified as such because the context of the statement will include
words such as the Company "believes," "anticipates," "expects" or
words of similar import. Similarly, statements that describe the
Company's future plans, objectives or goals are also forward-looking
statements. Such forward-looking statements are subject to certain
risks and uncertainties which could cause actual results to differ
materially from those currently anticipated. In addition to the
assumptions and other factors referenced specifically in connection
with such statements, the following could impact the business and
financial prospects of the Company: factors affecting the economy
generally, including the financial and business conditions of the
Company's customers, the demand for customers' products and services
that utilize the Company's products, and national and international
events; factors affecting the Company's financial performance or
condition, including restrictions or conditions imposed by current or
prospective lenders, tax legislation, and changes in accounting
principles; factors affecting percentage of completion contracts,
including the accuracy of estimates and assumptions regarding the
timing and levels of costs to complete those contracts; factors
affecting the Company's international operations, including
fluctuations in currencies, changes in laws and political or financial
insecurity of foreign governments; factors affecting the Company's
ability to complete the move from its Leeds, England, facility; hire
and retain competent employees, including unionization of non-union
employees and strikes or work stoppages; any further decrease in stock
price as a result of market conditions; changes in the law or
standards applicable to the Company, including environmental laws and
accounting pronouncements; availability of raw materials;
unanticipated technological developments that result in competitive
disadvantages and may impair existing assets; and factors set forth in
the Company's periodic reports filed with the SEC in accordance with
the Securities Exchange Act. Shareholders, potential investors and
other readers are urged to consider these factors and those set forth
in the Company's filings with the SEC carefully in evaluating the
forward-looking statements. The forward-looking statements made herein
are only made as of the date of this press release and the Company
undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances.