Amherst, New York, September 20, 1996 -- Mark IV Industries, Inc. (NYSE: IV) today announced the sale of Vapor Corporation to Westinghouse Air Brake Company (WABCO) for $66.4 million, including $64.4 million in cash and $2 million in future sales-related performance payments.
Vapor, with revenue of approximately $65 million in the fiscal year ended February 29, 1996, is the largest manufacturer of electronic door control systems and components for buses and rail vehicles in the U.S. and Canada. WABCO is a Pennsylvania-based manufacturer of railroad products.
Mark IV, which acquired Vapor in December 1990, will realize a pre-tax gain of approximately $17 million on the sale. Vapor is the first company to be sold among several transportation units Mark IV is in the process of divesting. Completion of the transaction was delayed by the U.S. Department of Justice, due to competitive concerns, which were recently satisfied.
Sal H. Alfiero, chairman and chief executive officer of Mark IV, said "Initially, the cash proceeds from this transaction will be used to reduce bank debt. However, these proceeds, along with those from additional dispositions, may be redeployed to finance acquisitions or repurchase the company's stock, in addition to debt reduction.
"Vapor, along with our other transportation units, is a solid performer. The decision to sell the company is a result of Mark IV's long-term strategic focus on our worldwide industrial and automotive operations."
Vapor's results of operations were included in Mark IV's recently reported consolidated financial results for the three and six month periods ended August 31, 1996, but will be eliminated from September 1, 1996, on.
Mark IV Industries, Inc., headquartered in the Buffalo suburb of Amherst, New York, employs approximately 17,600 people worldwide, manufacturing power and fluid transfer systems and components for global industrial and automotive markets.