29 January 1998: The Alpine Group Inc. of the United States announced that it has executed a definitive agreement for the previously announced acquisition of American Premier Holdings, Inc. through th…
29 January 1998: The Alpine Group Inc. of the United States announced that it has executed a definitive agreement for the previously announced acquisition of American Premier Holdings, Inc. through the merger of American Premier into Alpine“s Refraco Inc. refractories unit. The purchase transaction has received all necessary regulatory approval and was closed on 20 January 1998. Mr. Steve Elbaum, Chairman and CEO of Alpine, said: “The purchase of American Premier“s refractories operations, which are expected to generate approximately US$180 million in revenues and US$18 million in earnings before interest, taxes and depreciation for calendar 1997, is an important strategic acquisition for Refraco. American Premier“s outstanding operations, product breadth, strong customer relationships and management experience will significantly expand the quantity and quality of Refraco“s business both in North America and internationally.” The purchase price of US$133 million will be paid: US$100 million in cash and US$33 million through the issuance of 15% of the common stock of Refraco Inc. The remaining 85% of the common stock of Refraco Inc. will be owned by Alpine. The cash portion of the purchase price will be funded from the proceeds of an increased credit facility, as part of a committed US$320 million revolving credit and term loan facility provided by a bank syndicate led by Bankers Trust Co. Mr. Elbaum said Refraco“s consolidated 1998 calendar revenues will approximate US$540 million, and that it“s overall profitability will be enhanced by significant cost reduction and consolidation opportunities as well as revenue growth opportunities around the world. He said this is a result of the increased scale of Refraco“s operations, its product and market breadth, customer service and technical capabilities. “We expect the American Premier purchase to be accretive to Alpine“s earnings and to contribute strongly to Alpine“s long term growth and consolidation strategy in this industry,” Elbaum added. John Gehret of American Premier will become President of Refraco“s North American operations, which will combine American Premier with Refraco“s existing BMI-France operations to form, what the company says, “the strongest refractories operation in North America.”. Gehret will report to Stephen M. Johnson, the President of Refraco world-wide. Norm Taylor, who joined BMI-France in 1997, will be Executive Vice President for Refraco“s North American operations, and he will report to Gehret. The Alpine Group Inc. headquartered in New York, is a holding company with operations in two principal businesses. Superior Telecom, Alpine“s 50.1% owned subsidiary, is the leading manufacturer and supplier of telecommunications copper wire and cable products to telephone companies in North America. Superior also develops and manufactures voice and data multiplexers, other electronics and signal processing components and systems. Alpine“s 100% owned refractories business, Refraco Inc, including BMI-France and Hepworth Refractories, is a global manufacturer and supplier of refractory products and services to steel makers, aluminum, cement, glassmaking and other industries around the world. Michel de la Roche, President of Refraco Europe with headquarters in Swanwick, UK, was said to have been “extremely pleased” with the acquisition of American Premier. He said he looks forward to exploring all the potential synergies that exist within the Refraco group, now a “major league player” within the refractories world.