Applied Power Creates APW for Its Electronics Business
Applied Power Inc. (Butler, WI) recently announced plans to spin off its electronics business from its industrial business to create a pure global supplier in the electronic manufacturing services sector. The new company, to be called APW Ltd., will focus on the integrated electronics enclosures systems business and will be converted to a Bermuda corporation.
The spin-off is expected to be completed by fiscal year-end and should be tax-free to Applied Power shareholders.
"Over the past several months, we have been evaluating a range of alternatives to separate our electronics and industrial businesses," said Richard G. Sim, CEO of Applied Power. "The spin-off of APW from Applied Power provides for a clean and efficient separation of the industrial and electronics businesses, enabling each company to concentrate on its core business. This permits shareholders to make more focused investment decisions and allows the market to assign a more appropriate stand-alone valuation to each company."