Hathaway to Purchase Motor Products Companies
Hathaway Corp. (Denver, CO) announced that it has signed a stock purchase agreement to acquire 100 percent of Motor Products - Owosso Corp. (Owosso, MI) and Motor Products Ohio Corp. (Barberton, OH), motor producers for more than 50 years and manufacturers of customized, sub-fractional horsepower permanent magnet dc motors used in HVAC and actuation systems in a variety of markets, including trucks, buses, RVs, off-road vehicles and industrial equipment.
Hathaway will pay $11,800,000 of which $11.5 million is payable in cash at closing, and a $300,000 note guaranteed by Hathaway is payable six months after closing. Hathaway will acquire the stock of the two Motor Products companies from Owosso Corp. (King of Prussia, PA), a publicly held corporation. The closing is scheduled to take place on July 30, 2002.
"We are very excited about the addition of Motor Products to further Hathaway's new strategy of expanding our motion control business," commented Hathaway CEO Dick Smith. "With the pending sale of Hathaway's power and process segment, the company's efforts are focused on growth in motion control both through our existing businesses and acquisition opportunities of complementary motion control businesses."