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[January 2004]
Oneida Agrees To Sell Buffalo China Factory; Plant To Operate As Independent Supplier To Oneida
ONEIDA, N.Y., Jan. 20, 2004 (PRIMEZONE) -- Oneida Ltd. (NYSE:OCQ - News) today announced that it has agreed to sell certain assets of its Buffalo China dinnerware factory in Buffalo, N.Y., to BC Acquisition Company LLC of Buffalo for $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, N.Y.; 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 finalized during Oneida's 2004 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 L. Lupica, who has been Oneida's Senior Vice President and General Manager for Buffalo Operations.
Oneida had announced on October 31, 2003 that it 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 locations, including a dinnerware factory in Juarez, Mexico; flatware factory in Toluca, Mexico; holloware factory in Shanghai, China; holloware factory in Vercelli, Italy, are scheduled to close as planned within the next few weeks. Those facilities' assets are in the process of being sold.
"We are especially pleased to reach the Buffalo sale agreement, which is a positive development for the city of Buffalo as well as Oneida,'' said Peter J. Kallet, Oneida Chairman and Chief Executive Officer. "As we have previously stated, Buffalo and the other factory sites have been vital parts of our company, and the decision to close them was an extremely difficult action.''
Mr. Lupica, heading BC Acquisition, said "This transaction is contingent upon our finalizing governmental assistance packages, and we appreciate the efforts of local and state government leaders on our behalf. Our goal is to continue a smooth flow of dinnerware products to Oneida. We are committed to improving the factory so it can remain as a fixture in Buffalo.''
Oneida Ltd. is a leading source of flatware, dinnerware, crystal, glassware and metal serveware for both the consumer and foodservice industries worldwide.
ENDS