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[March 2004]
Oneida Completes Sale of Buffalo China Factory; Plant to Operate as Niagara Ceramics Corporation
ONEIDA, N.Y., March 12, 2004 (PRIMEZONE) -- Oneida Ltd. (NYSE:OCQ) today announced that it has completed its sale of certain assets of its Buffalo China dinnerware factory in Buffalo, N.Y., to Niagara Ceramics Corporation of Buffalo for $5.5 million in cash. Oneida previously announced on January 20, 2004 an agreement to sell the assets to BC Acquisition Company LLC, which has since assigned its interests to Niagara Ceramics Corporation, an entity comprised of the same principal leadership as BC Acquisition Company, LLC.The sale includes the factory buildings and associated equipment, materials and supplies. The Buffalo China name and all other active Buffalo China trademarks and logos will remain the property of Oneida. The sale does not include the Buffalo China warehouse in Buffalo, N.Y., which Oneida will continue to operate for the foreseeable future.
As was previously announced, the buyers will operate the Buffalo factory as an independent supplier. Niagara Ceramics is headed by Robert L. Lupica, who previously was 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. The Buffalo site has remained in operation through the completion of the sale. The other four locations that were closed included a dinnerware factory in Juarez, Mexico; flatware factory in Toluca, Mexico; holloware factory in Shanghai, China; holloware factory in Vercelli, Italy. Those facilities' assets also are in the process of being sold.
"With the completion of the Buffalo factory sale, we have finalized a key element in our restructuring," said Peter J. Kallet, Oneida Chairman and Chief Executive Officer. "We wish all the best to Niagara Ceramics in their operations, and we look forward to working with them as one of our key suppliers to Oneida Foodservice."
Mentioned Last Change
OCQ 4.75 0.01dollars or (0.21%)
Mr. Lupica of Niagara Ceramics said, "We would like to express our thanks to local and state government leaders whose assistance helped make this transaction possible. We are focused on enabling the factory to continue as an important presence in Buffalo, and on building a wide-ranging dinnerware business."Oneida Ltd. is a leading source of flatware, dinnerware, crystal, glassware and metal serveware for both the consumer and foodservice industries worldwide.
ENDS