Amherst, New York, February 10, 1997 -- Mark IV Industries, Inc. (NYSE: IV) today announced that it has completed the sale of its professional audio business, Mark IV Audio, to an affiliate of Greenwich Street Capital Partners, Inc., for $156.4 million in cash. The increase in the selling price from the previously-announced $151.5 million reflects adjustments made to accommodate changes in Mark IV Audio's balance sheet through the date of closing.
Mark IV Audio, a leading manufacturer and distributor of professional audio products, had revenue of approximately $195.5 million in the fiscal year ended February 29, 1996. The unit is one of several non-core businesses being sold by Mark IV in order to focus on its core businesses: power transmission, fluid transfer and filtration. Mark IV will realize a gain on the transaction, which will be reported in the current (fourth) quarter.
Sal H. Alfiero, Mark IV's chairman and chief executive officer, said "Initially, the cash proceeds from this transaction will be used to pay down bank debt. The completion of the sale of Mark IV Audio brings the total proceeds received from fiscal 1997 dispositions to approximately $277 million. As has been previously stated, over the longer term, the capital generated by our divestiture program may be used to make acquisitions in core business areas, and/or to repurchase the company's common stock."
Mark IV Industries, Inc., headquartered in the Buffalo suburb of Amherst, New York, employs approximately 15,400 people worldwide, manufacturing power transmission, fluid transfer and filtration systems and components for global industrial and automotive markets. Greenwich Street Capital Partners, Inc. is a New York-based private equity fund.