U.S. PLASTIC LUMBER CORP. ANNOUNCES SALE OF CORNERBOARD BUSINESS
Contact:
U.S. Plastic Lumber Corp., Boca Raton -- Mark S. Alsentzer, CEO or Bruce C. Rosetto at 561-394-3511
or
KCSA Worldwide, New York --Evan Smith or Erica Pettit at 212-896-1251 or 212-896-1248
BOCA RATON, Fla.--(BUSINESS WIRE)--May 15, 2003--U.S. Plastic Lumber Corp. (NasdaqSC:USPL), announced today that it has completed the closing of the sale of its cornerboard business to Illinois Tool Works Inc. ("ITW") for a net purchase price of $8.2 million. Proceeds will be used for debt reduction and working capital.
Mark Alsentzer, CEO of USPL stated, "We are pleased that we have been able to close the sale of our cornerboard business to ITW. The cornerboard business was not an integral part of the future growth plans of USPL. While the pay down of debt further strengthens our improving balance sheet, the closing of the sale provides the Company with significant working capital to allow USPL to continue to focus on what it sees as its primary growth opportunities for the foreseeable future."
Michael Loeschen, the Vice President and General Manager of ITW's Protective Packaging Group, said, "The positive effects of this transaction for ITW will be immediate. The plastic cornerboard business of USPL integrates well with our existing business and customer base. We believe this acquisition positions us well to continue to serve our industry."
Certain statements and information included in this press release constitute "forward looking statements" contained within the meaning of the Private Securities Litigation Act of 1995. When used in this press release, the words or phrases "will likely result", "are expected to", "will continue", "is anticipated", "estimate", "projected", "intends to" or similar expressions are intended to identify "forward-looking statements". Such statements are subject to certain risks and uncertainties, including but not limited to risks associated with our credit facilities and liquidity, the ability to obtain adequate financing on commercially acceptable terms, economic conditions, the affects of rapid growth upon the Company and the ability of management to effectively respond to such growth, demand for products and services of the Company, newly developing technologies, the Company's ability to compete, regulatory matters, protection of the Company's proprietary technology, the effects of competition from entities with greater financial resources than that possessed by the Company and shareholder dilution. Such factors could materially adversely affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed within this press release. Additional discussions of such factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations are contained in the Company's SEC filings. |
