CITATION CORPORATION
2700 Corporate Drive
Suite 100
Birmingham, AL 35242-2733
(205) 871-5731
Fax: (205) 870-8211
January 5, 2007
Citation Corporation announces sale of Navasota division to private equity firm.
BIRMINGHAM, Ala. - Citation Corp. today announced the sale of its Navasota, Texas, custom forging division, a move that will allow the company to focus more resources on its machining and casting operations.
The sale transfers ownership to Balmoral Advisors, a Los Angeles-based private equity firm. The sale allows the division to remain in operation, preserving jobs for about 400 people who work there. Terms of the sale were not disclosed.
This is a good move for Citation and for our Navasota employees, said Citation President Ed Buker. Forgings make up less than 10 percent of our sales, and as we adjust to our strengths, it makes less sense to operate the Navasota facility. The sale also helps us as we continue to reduce our debt.
Jonathan Victor, Managing Director of Balmoral Advisors, said, This company has great fundamental value with a solid management team led by George Thomas. In the seven months since George came to Navasota, he has already made significant operational improvements to the business.
Since emerging successfully from Chapter 11 bankruptcy in May 2005, Citation has focused increasingly on its core businesses. In December 2005, the company announced it would expand its Grand Rapids Division and phase out its Lake Zurich Division by the end of 2006. In September, Citation announced that it would also phase out its Bay Minette, Ala., operations by the end of 2006.
The Navasota Division, acquired by Citation in 1996 in its purchase of Interstate Southwest Forgings Inc., provides forged steel products for the construction, light automotive, aerospace and medium and heavy truck industries. Key products include draw bars, end bits, landing gears, ripper shanks, steering knuckles/arms, tension struts, turbine blades and valve bodies.
About Citation
Citation is a privately held corporation based in Birmingham, Ala. Through its subsidiaries, the company produces high-quality cast and machined components for several market segments, including the automotive, heavy truck, construction, agricultural and commercial industries. The company operates facilities in Alabama, Indiana, Wisconsin, Michigan, Illinois, Texas, and North Carolina. For more information about Citation Corporation, contact Gene Monteith at 614-224-0600 Ext. 312.
About Balmoral Advisors
Balmoral Advisors LLC is a Los Angeles-based private equity firm which invests in recapitalizations, special situations, and acquisitions of small and middle-market companies. Its target companies have revenues of $25 million to $500 million; are typically experiencing financial distress; undergoing or in need of an operational turnaround; and/or misunderstood or undervalued by their markets or stakeholders. For more about Balmoral Advisors, please contact Lisa Gonzalez at 212-758-2629 or lgonzalez@balmoraladvisors.com.