NNBR - NN Inc. Strengthens Balance Sheet Through Sale of Non-Core Plastics Plant | Benzinga
CHARLOTTE, N.C., July 02, 2024 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ:NNBR), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today announced it has entered into a definitive agreement to sell its lone plastics products plant known as Industrial Molding Corporation (IMC), to Davalor Mold Company, a wholly owned portfolio company of Blackford Capital. Total net cash proceeds will be approximately $16 million.
"NN is underway with a strategic transformation that includes leveraging our core competencies and implementing a supportive balance sheet" said Harold Bevis, President and CEO of NN, Inc. "IMC is a good, stand-alone plastics injection-molding plant and is not core to our strategic direction. Our core competencies are centered upon delivering globally competitive, mission critical manufacturing solutions to discriminating buyers of high-value, high-precision components and sub-assemblies. This plant is not consistent with this direction and is more general-purpose in nature. Furthermore, the products and customers in this plant are unique to it and there will be no impact to NN's remaining business. The plant's business is centered in generic vehicle parts and ball bearing components."
"A key element of NN's transformation and leadership plan is to progressively correct our balance sheet back to market norms. We will pay down debt with the net proceeds from this transaction and continue to advance our balance sheet initiatives. We have a tremendous amount of opportunities in front of us and are excited to implement them. We will continue to focus and refine our business plans in our chosen markets of auto, electrical, industrial and medical," said Bevis.
Updated 2024 Outlook
As a result of this portfolio divestiture and debt reduction and deleveraging transaction, NN is revising its full-year 2024 outlook modestly as follows:
- Revenue will be in the range of $465 million to $485 million.
- Adjusted EBITDA will be in the range of $47 million to $51 million.
- Free cash ...