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[February 2004]
Oneida to Sell Certain Buffalo China Assets
Oneida Ltd (Oneida, NY, USA) announced on 20 January 2004 that it had agreed to sell certain assets of its Buffalo China dinnerware factory in Buffalo, NY, USA to BC Acquisition Company LLC of Buffalo for US$5.5 million in cash.
The sale includes the factory buildings and associated equipment, materials and supplies. The Buffalo China name and all other Buffalo China trademarks and logos will remain the property of Oneida. The transaction does not include the Buffalo China warehouse in Buffalo, NY. Oneida is continuing to explore its options for that location. Completion of the transaction is subject to certain conditions being satisfied by both sides and it is expected to be finalised during Oneida's first fiscal quarter.
Under the proposed transaction, BC Acquisition Company plans to operate the Buffalo factory as an independent supplier to the dinnerware industry, including Oneida. The company will be headed by Robert Lupica, who has been Oneida's Senior Vice President and General Manager for Buffalo Operations.
Oneida had originally announced on 31 October 2003 that it had decided to close the Buffalo factory, along with four other factory sites because of factors involving manufacturing costs. Oneida will continue operating the Buffalo site through the completion of the sale. The other four plants - a dinnerware factory in Juarez, Mexico, a flatware factory in Toluca, Mexico, a holloware factory in Shanghai, China and a holloware factory in Vercelli, Italy are all scheduled to close as planned within the next few weeks. Those facilities' assets are in the process of being sold.
ENDS