Nashua Corp. Enters Purchase and Sale Agreement
Nashua, New Hampshire, USA, 07 November 2006 –- Nashua Corporation (NASDAQ: NSHA), a manufacturer of labels and thermal and specialty papers, today announced that it has entered into a purchase and sale agreement with Equity Industrial Partners Corp. relating to the sale of its real estate holdings in Merrimack, New Hampshire.
The holdings consist of two buildings, one with approximately 105,000 square feet and the other with approximately 480,000 square feet, plus approximately 48 acres of land. The total sales price of the real estate will be USD 18.5 million. The transaction is scheduled to close by 29 November 2006. Under the terms of the agreement, Nashua will lease back approximately 160,000 square feet of space to operate its coated paper business.
Thomas Brooker, president and chief executive officer of Nashua, stated, "The transaction is part of our plan to monetize under-utilized assets and to reduce our operating cost. Over the past nine months our coating operations team has spent time and money on the consolidation of space within the facility. We believe completing the sale and the consolidation will allow them to focus their full attention and efforts on the growth and profitability of our coating business."
The company expects to use the proceeds from the transaction to reduce debt and fund its stock repurchase plan.
Nashua Corporation manufactures and markets a wide variety of specialty imaging products and services to industrial and commercial customers to meet various print application needs. The company's products include thermal coated papers, pressure-sensitive labels, bond, point of sale, ATM and wide format papers, entertainment tickets, and ribbons for use in imaging devices. Additional information about Nashua Corporation can be found at www.nashua.com.