Reinhold (NASDAQ:RNHDA)
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Reinhold Industries, Inc. Completes Review of Strategic
Alternatives; Announces Quarterly Dividend; Appoints Three New Directors
SANTA FE SPRINGS, Calif., Aug. 12 /PRNewswire-FirstCall/ -- Reinhold
Industries, Inc. (NASDAQ:RNHDA) of Santa Fe Springs, California, announced
today that it has completed the review of strategic alternatives for maximizing
shareholder value announced in September 2003. The Company has been working
with its financial advisor, William Blair & Company, LLC, to identify and
explore strategic alternatives including a merger or other transaction that
would have resulted in a change in control of the Company. As a result of that
process, the board believes that superior value can be achieved for
shareholders through continued pursuit of the long-term strategy of the Company
and has determined not to engage in a change in control transaction at this
time.
Michael T. Furry, President and Chief Executive Officer, said, "Following an
extensive review of various options, including a sale or merger, our board of
directors concluded that it is in the best interests of the Company to pursue
its current business strategy. The board believes that the Company's long-term
strategy will ultimately generate superior shareholder value. Though the
Company may consider strategic business opportunities in the future, this will
no longer be our immediate focus."
The Company also announced today that it has adopted a policy of issuing a
regular quarterly cash dividend. The amount of the dividend and record date
will be approved each quarter by the board of directors. The company also
announced that it will pay a quarterly dividend of $0.50 per share to
shareholders of record as of September 1, 2004. As the Company pursues its
long-term strategy, the board intends to consider the Company's current
dividend policy, including the possibility of the issuance of a special
dividend to shareholders.
Also today, the Company has announced that three new independent directors have
been appointed to the board of directors. Mr. C. Miles Schmidt, Mr. Richard C.
Morrison and Mr. Matthew C. Hook were all appointed to the board as of August
12, 2004. Mr. Schmidt is the retired president of Halcore Group, Inc., the
nation's leading ambulance manufacturer. Mr. Morrison is the retired managing
director of Babson Capital Management, Inc. (a member of the MassMutual
Financial Group). Mr. Hook is a managing director of Centerfield Capital
Partners. "We are delighted that these gentlemen have accepted the Board's
appointment. The financial and business experience of each new director will
be a tremendous resource to the Board as the Company continues to move
forward," said Chairman Ralph R. Whitney, Jr.
Reinhold Industries, Inc. is a manufacturer of advanced custom composite
components, sheet molding compounds, and graphic arts and industrial rollers
for a variety of applications in the United States and Europe.
This news release contains forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve risks and uncertainties, and Reinhold's actual experience may differ
materially from that anticipated in such statements. Factors that might cause
such a difference include those discussed in Reinhold's filings with the
Securities and Exchange Commission, including but not limited to its most
recent proxy statement, Form 10-K and Form 10-Q.
DATASOURCE: Reinhold Industries, Inc.
CONTACT: Judy Sanson of Reinhold Industries, Inc., +1-562-944-3281