19 March 1998: US group Corning Incorporated announced that its board of directors has approved a definitive agreement for a recapitalization of its consumer housewares business and the sale of a cont…
19 March 1998: US group Corning Incorporated announced that its board of directors has approved a definitive agreement for a recapitalization of its consumer housewares business and the sale of a controlling interest in the business to an affiliate of Borden, Inc. of America. The transaction is valued at approximately US$ 603 million and is expected to result in cash proceeds to Corning of approximately US$ 583 million. In addition, Corning will retain an 8% interest in Corning Consumer Products Company and may receive an additional payment of up to US$ 15 million, depending on the future profits of the company. Corning expects to realize a modest after-tax gain upon the closing of the transaction. Corning said it intends to use the proceeds from the transaction to invest for future growth in its communications, environmental and advanced materials businesses, and to improve its balance sheet. “This transaction will allow Corning Incorporated to focus on the high-growth, technology-driven businesses that are key to our long-term strategy,” said Corning“s Chairman and Chief Executive Officer Roger G. Ackerman.