Business News
Gerber Scientific, Inc Issues Statement in Response to www.ApparelNews.net Story
Tuesday 07. July 2009 - Gerber Scientific, Inc. (NYSE:GRB) today issued the following statement in response to an article that appeared on ApparelNews.net on July 2, 2009 titled "Parent Co. of Gerber Tech May Sell Assets." The Apparelnews.net story speculates whether Gerber Scientific may sell its Gerber Technology business unit.
Gerber Scientific operates three strategic business segments: Sign-Making and Specialty Graphics, Apparel and Flexible Materials, and Ophthalmic Lens Processing. Gerber Technology is the major and thus core asset within the Apparel and Flexible Materials segment. In a press release dated June 26, 2009, the Company stated that it was currently considering several assets sales that, collectively, could generate proceeds of up to $20 million. Further to the press release comments, during the Companys regular quarterly earnings conference call also held on June 26, 2009, of which a replay is available on the companys website, Gerber discussed that the assets being considered for sale were non?core, non-strategic and/or underperforming assets. Non-core assets include vacant land, under-utilized patents, and smaller business units within Gerber Scientific, Inc.s three core business segments. If sold, the proceeds from these sales would increase the amount of available credit under Gerbers existing credit facility.
Marc Giles, Gerber Scientific President and CEO said, “As a matter of policy, we do not discuss potential transactions until they are consummated, but wanted to set the record straight that our Gerber Technology business unit, which is a key business unit for us, is not being considered for sale.”