Glaston Oyj Abp - Company Announcement

Glaston sells its pre-processing machines business; continues as distributor

Helsinki, Finland, 2015-05-22 16:45 CEST (GLOBE NEWSWIRE) -- Glaston
Corporation                    Stock Exchange Release         22.5.2015 at
17.45 (EET) 



Glaston sells its pre-processing machines business; continues as distributor

Glaston Corporation has today signed a binding agreement on the sale of 100% of
the shares of Glaston Italy S.p.A to the local management of Glaston Italy
S.p.A. 

“Glaston has a clear strategy and direction, which is sustainable and
profitable growth. The company's expertise is strongest in heat treatment
technology. We have successfully developed this segment by launching machines
which represent the most advanced technology and which have clearly fulfilled
customers' needs. The agreement signed today means that we can in future focus
all of our resources on areas where we are already strong in terms of both
expertise and profitability,” says Glaston Corporation's President & CEO, Arto
Metsänen. 

Glaston acquired the Italian company Z. Bavelloni Immobiliare S.p.A., which
specialised in pre-processing operations, in 2003. Pre-processing operations
include the manufacturing and servicing of glass pre-processing machines.
Pre-processing machines are reported as part of the Machines segment and their
servicing as part of the Services segment. The sale and manufacturing of tools
related to pre-processing operations will remain in Glaston. Glaston will
continue to distribute and service pre-processing machines in areas agreed with
the buyers. Glaston Italy has around 140 employees, of whom around 40 work in
tool operations. 

The finalisation of the sale will require the fulfilment of the customary terms
and conditions of company acquisitions. The buyers and seller have agreed that
the purchase price will not be disclosed. The sale is expected to be finalised
by the end of June 2015. When the sale is finalised, Glaston will incur
non-recurring losses estimated at EUR 9 million, of which an estimated EUR 7
million will consist of impairment of goodwill. This item will have no impact
on cash flow. Impairments arising from the sale will have a negative impact on
the parent company's distributable funds but will not, however, jeopardise the
company's capacity for normal distribution of funds. The sale of pre-processing
operations will improve Glaston's relative profitability and therefore support
the company's strategic objectives. The above assessments of the impact of the
sale will be revised in connection with the finalisation of sale. 

The sale does not change Glaston's guidance for 2015, published earlier.

On its finalisation, the sale might affect the reporting segments.



Further information:
Arto Metsänen, President & CEO, Glaston Corporation, tel. +358 10 500 6100
Sasu Koivumäki, Chief Financial Officer, Glaston Corporation, tel. +358 10 500
6412 



Sender:
Glaston Corporation
Agneta Selroos
Director, Communications and Marketing
Tel. +358 10 500 6105




Glaston Corporation
Glaston is a global company developing glass processing technology for
architectural, solar, appliance and automotive applications. Our products range
from pre-processing and safety glass machines to software solutions and
maintenance services. We are dedicated to our customers' continued success and
provide services for all glass processing needs with a lifecycle-long
commitment in mind. Further information is available at www.glaston.net.
Glaston's share (GLA1V) is listed on the NASDAQ OMX Helsinki Small Cap List. 

Distribution: NASDAQ OMX Helsinki, key media, www.glaston.net

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Glaston sells pp machines business.pdf