Monarch Machine Being Sold, Genesis Exits Machine Tool Business

Genesis Worldwide Inc (Dayton, OH) has reached an agreement to sell the assets of its Monarch Machine Tool (Cortland, NY) business for $8.0 million in cash, subject to a possible price adjustment based on final net asset values of the business.

Management, together with a Syracuse, NY-based venture capital firm, Cygnus MANAGEMENT GROUP LLC, leads the group acquiring Monarch Cortland. The sale, which is expected to close prior to February 18, is conditional pending completion of the buyer's financing arrangements. Genesis expects to record an after-tax loss of $3.8 million in 1999 as a result of this divestiture.

The machining center lines that are manufactured in Cortland include its PMC, VMC, and Zonal vertical machining centers.

"The sale of our machining center business marks the completion of a strategic repositioning of Genesis Worldwide begun in 1997," explains Richard E Clemens, president and CEO of Genesis. "This operation is one of several non-strategic assets divested during the past 3 years. We have completely exited the machine tool business, which had annual revenues f $16.5 million in 1999. Our efforts and capital are now fully concentrated on the metal coil processing equipment business. With the company's 1998 acquisition of GenCoat (formerly GFG Corporation) and the 1999 acquisition of Herr-Voss, we are recognized as the North American market leader in specially-designed and highly-engineered manufacturing systems."