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AGY Holding Corp. Announces Entry into a Purchase Agreement to Sell its Stake in AGY Huntingdon, LLC

Friday, September 20, 2013 2:07 PM


AGY Holding Corp. Announces Entry into a Purchase Agreement to Sell its Stake in AGY Huntingdon, LLC

On September 19, 2013, AGY Holding Corp. (the “Company” or “AGY”), entered into an agreement to sell 100% of the assets in AGY Huntingdon, LLC to Huntingdon Acquisition Co., LLC, an entity established for this purpose by Stonewood Capital Management, Inc. (Stonewood Capital), a Pittsburgh-based private equity group. Business Development Asia acted as the exclusive advisor to AGY on the transaction. Details of the agreement were not disclosed.

“We are delighted to announce the agreement with Stonewood Capital to purchase our Huntingdon business unit,” said Drew Walker, President and CEO of AGY. “We see this divestiture and the sale of AGY Shanghai, which was concluded earlier this month, as critical steps in successfully implementing our business strategy. These actions allow us to concentrate more intently on our fine yarns and S-2 products, and provide to our customers, high quality advanced materials that are made in America.” Kenn Moritz, President of Stonewood Capital, said that "Stonewood is excited to invest in the CFM business and assist the Huntingdon management team in its efforts to capitalize on growth initiatives."

Since acquiring the Huntingdon Pennsylvania plant in 2007, which makes up the CFM business including the wound products and conductive roving business, AGY has profitably produced the unique glass fiber product used in the production of electrical insulation panels, pultruded shapes for industrial products, energy market products for power generation and oil rig safety, and composite parts for automotive interiors. AGY will continue operating the plant until the transaction is completed and transitioned to Stonewood Capital ownership.

About AGY

AGY is a leading global producer of fiberglass yarns and high-strength fiberglass reinforcements used in a variety of composites applications. AGY serves a diverse range of markets including the following: aerospace and defense (the “A&D” business); electronics; and construction, continuous filament mat (“CFM”) and industrial markets (the “G&I” business). Headquartered in Aiken, South Carolina, AGY has a sales office in Lyon, France a manufacturing facility located in Aiken, South Carolina. Additional information may be found at AGY’s website, www.agy.com or by email at info@agy.com.

About Stonewood Capital Management

Stonewood Capital Management, Inc. is a Pittsburgh-based private equity group seeking investment and buy-out opportunities with companies which have revenues of $5 to $50 million. For further information on Stonewood Capital, please see www.stonewoodcapital.com.

Safe Harbor for Forward Looking and Cautionary Statements

Certain statements contained in this release are forward-looking and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All statements included herein, other than statements of historical fact, may constitute forward-looking statements. In some cases you can identify forward-looking statements by terminology such as “may,” “should” or “could.” Generally, the words “anticipates,” “believes,” “expects,” “intends,” “estimates,” “projects,” “plans” and similar expressions identify forward-looking statements. Although AGY believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Among these risks and uncertainties are general economic and business conditions; AGY’s ability to generate cash flows to service its debt; AGY’s compliance with the restrictive covenants contained in its various debt agreements; adverse changes in market conditions or product demand; the level of cost reduction achieved through restructuring and capital expenditure programs; changes in energy, alloy metals and raw material costs and availability; downward selling price movements; the success of new technology; labor disputes or increased labor costs; AGY US’s borrowing base sensitivity to precious metals market prices and amount of owned alloy metals; AGY US’s ability to maintain an available minimum $6.25 million borrowing capacity to avoid the triggering of a springing covenant, which would likely result in an event of default under its senior secured revolving facility; currency and interest rate fluctuations; increases in AGY’s leverage; changes in AGY’s business strategy or development plans; the timing and cost of plant closures; and increases in the cost of compliance with laws and regulations. Additional factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, those risk factors listed from time to time in AGY’s filings with the Securities and Exchange Commission. Except as required by applicable law, AGY assumes no obligation and does not intend to update these forward-looking statements.

(Source: Business Wire )
(Source: Quotemedia)

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