Business
The Eastern Company Announces the Sale of Argo EMS
NAUGATUCK, CT / ACCESSWIRE / October 19, 2022 / The Eastern Company ("Eastern" or the "Company") (NASDAQ:EML), an industrial manufacturer of unique engineered
About this update from Eastern Company (the)
[{"type":"text","content":"NAUGATUCK, CT / ACCESSWIRE / October 19, 2022 / The Eastern Company (\"Eastern\" or the \"Company\") (NASDAQ:EML), an industrial manufacturer of unique engineered solutions serving commercial transportation, logistics, and other industrial markets, today announced that it has sold its Argo EMS business (\"Argo\").August Vlak, Eastern's President & CEO, said that \"the divestiture of Argo will further streamline our portfolio of businesses and build scale in our largest businesses, which we believe will accelerate Eastern's growth and strengthen our operating margins. With the sale of Greenwald Industries and Frazer & Jones, which we completed last year, this transaction further strengthens our focus on our three core businesses.\"Mr. Vlak added, \"In August of last year, we announced our intent to divest our non-core businesses and began reporting these businesses as discontinued operations. With the transaction announced today, we have completed the sale of all non-core businesses.\"The Company expects to use the proceeds from the transaction primarily to reduce debt and strengthen its balance sheet. The Company also expects to record a gain on the sale of these assets in its fourth quarter of fiscal 2022.The terms of the transaction were not disclosed.About The Eastern CompanyThe Eastern Company manages industrial businesses that design, manufacture and sell unique engineered solutions to niche markets, focusing on industries that offer long-term macroeconomic growth opportunities. The Company operates from locations in the U.S., Canada, Mexico, U.K., Taiwan, and China. More information on the Company can be found at www.easterncompany.com.Safe Harbor for Forward-Looking StatementsStatements in this document that are not based on historical facts are \"forward-looking statements\" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act. Forward-looking statements may be identified by the use of forward-looking terminology such as \"would,\" \"should,\" \"could,\" \"may,\" \"will,\" \"expect,\" \"believe,\" \"estimate,\" \"anticipate,\" \"intend,\" \"continue,\" \"plan,\" \"potential,\" \"opportunities,\" or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company's business and the results of its operations and that may ca...