NAUGATUCK, Conn.--(BUSINESS WIRE)--June 20, 2000--The Eastern Company (Amex:EML) announced today that it has signed a definitive agreement to purchase the assets of Greenwald Industries, Inc. and Greenwald Intellicard, Inc. based in Chester, CT. Both companies are subsidiaries of PubliCARD, Inc. (NASD:CARD), which is headquartered in New York City. The cash purchase price of the two Greenwald subsidiaries is approximately $22.5 million.
Greenwald is universally recognized as the leading provider of coin meter products that are used primarily in the commercial laundry industry, an industry the company has served for over forty years. With its acquisition of Intellicard in 1998, Greenwald solidified its position as the market leader by extending its product line to include "smart card" payment systems. Greenwald's Intellicard subsidiary is focused on becoming a leading developer of "smart card" products and systems. Included among the company's products are smart cards, card readers and money transfer stations. It is estimated that by the year 2001 there will be 3.4 billion smart cards in use worldwide and that smart card activities are growing at the rate of 30% per year.
Leonard F. Leganza, President and CEO of Eastern stated, "We are extremely pleased to have this long standing market leader as part of the Eastern Company. Along with its well-established product line and market distribution channels, Greenwald brings with it a level of manufacturing expertise which will enhance that which presently exists in our other divisions. In addition, Greenwald's smart card product line adds a new opportunity to develop more sophisticated technologies at The Eastern Company. We believe we will be able to leverage this technological expertise to other areas of the Company and to explore new markets. Finally, we anticipate that this acquisition will be accretive to Eastern's earnings right from the beginning."
The Eastern Company manufactures and markets a broad range of locks, latches, fasteners and other security hardware that meets diverse security and safety needs of industrial and commercial customers. Headquartered in Naugatuck, CT, the Company has seven manufacturing locations in the U.S.A., Canada, Mexico and the Pacific Rim.
Forward-Looking Statements: Information in this news release contains statements which reflect the Company's current expectations regarding its future operating performance and achievements. Actual results may differ due to the many economic uncertainties that affect the Company's business environment. Further information about the potential factors which could affect the Company's financial result are included in the Company's reports and filings with the Securities and Exchange Commission. The Company is not obligated to update or revise the aforementioned statements for those new developments.
CONTACT: The Eastern Company
Leonard F. Leganza
(203) 729-2255 ext. 105