Consumables

Neschen Corporation signs non-binding Letter of Intent (LOI) to sell substantially all the assets of the US business

Monday 13. May 2013 - Neschen Corporation, based in Elkridge, Maryland USA and 95% owned by Neschen AG and 5% by wholly owned Neschen Benelux BV ("Neschen") has signed a non-binding Letter of Intent ("LOI") on 9 May 2013 to sell substantially all of its assets in the United States.

The completion of the proposed divestiture is subject to the purchaser’s satisfactory completion of due diligence, and the negotiation and execution of a definitive agreement satisfactory to both parties. The terms of the proposed divestiture, as well as the name of the purchaser are subject to a Confidentiality Agreement entered into by the parties and cannot be disclosed.
Neschen has owned the US business since 2001when it acquired the SEAL brand together with several production facilities from the Hunt Corporation. Neschen’s US business accounted for approximately 20% of the Neschen Group sales in 2012.The US business operated at a loss and its sale will relieve the parent corporation of on-going financial support.