Nashua Corp. Sells New Hampshire Real Estate
Nashua, New Hampshire, USA, 30 November 2006 -– Nashua Corporation (NASDAQ: NSHA), a manufacturer of labels and thermal and specialty papers, today announced that it has completed its previously announced sale of real estate located in Merrimack, New Hampshire, to Equity Industrial Partners Corp.
The sale price of the real estate was USD 18.5 million. The company expects to report a net gain of approximately USD 10 million in the fourth quarter of 2006 on the transaction. As part of the transaction, Nashua is leasing back approximately 156,000 square feet of space in the Merrimack facility for its paper coating operations.
Thomas Brooker, president and chief executive officer of Nashua, stated, "The sale of the Merrimack, New Hampshire, real estate caps an eventful year in which Nashua liquidated nonstrategic businesses and real estate assets, generating a significant amount of cash. Our toner and coated carbonless businesses were liquidated with the sale of certain assets and intellectual property. Real estate in Nashua and Merrimack was sold with the company only leasing back approximately 20% of the space sold. Primarily as a result of the sale of the New Hampshire real estate, we expect to reduce debt by approximately USD 17 million by year end and fund our share repurchase program."
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.