07 May 2008
07 May 2008
Owens Corning has completed the sale of two composite manufacturing plants, located in Battice, Belgium, and Birkeland, Norway, to Platinum Equity
The aggregate gross purchase price for the sale was euro 155 million ($242 million). After costs associated with the transaction and to position the business as an ongoing concern, Owens Corning expects to realize net proceeds of approximately $197 million, consisting of cash proceeds of $184 million plus the assumption of certain liabilities by the purchaser. As a result of the sale, Owens Corning recorded an additional impairment charge of approximately $10 million in the first quarter of 2008. These amounts are subject to post-closing adjustments.
Owens Corning previously announced that it reached a definitive agreement to sell the two facilities to address regulatory concerns associated with Owens Corning's acquisition of Saint-Gobain's reinforcements and composite fabrics businesses on November 1, 2007. The sale implements required European regulatory remedies.
As previously disclosed, in addition to the manufacturing facilities, the transaction includes the transfer of other assets related to the ongoing operation of the facilities, including intellectual property rights and precious metals used in production tooling