The Eastern Company Purchases Assets and Business of Royal Lock Corporation
9/25/2006 12:53:00 PM
NAUGATUCK, Conn.--(BUSINESS WIRE)--Sept. 25, 2006--The Eastern
Company (AMEX-EML) ("Eastern") today announced that it has purchased
the assets and business of Royal Lock Corporation ("Royal Lock") of
Wauconda, Illinois. Royal Lock is a supplier of cam locks, switch
locks, padlocks, latches, handles and specialty hardware parts. Its
products are sold to numerous OEM's in several market segments,
including automotive, recreational vehicles and furniture as well as
electronics and fabricated metal parts producers. Royal Lock's
capabilities provide customized solutions to an unlimited range of
lock and specialty part requirements and the company will operate as a
division of the Security Products Group of Eastern.
Leonard F. Leganza, President and CEO of Eastern stated, "We
anticipate that the acquisition of Royal Lock will broaden our range
of lock and hardware products as well as distribution capabilities.
The combined customer base will also benefit from the expanded
engineering team and its link to our China manufacturing source in the
development of new products."
"We are excited to be combining with the Security Product Group of
The Eastern Company," stated Larry Freck, the President of Royal Lock.
"Together, we will have a stronger market presence, broader product
range and enhanced technological expertise. Royal Lock believes this
combination further demonstrates our continuing commitment to complete
The Eastern Company is a 148-year-old manufacturer of industrial
hardware, security products and metal castings. It operates from nine
locations in the U.S., Canada, Mexico, Taiwan and China. The diversity
of the Company's products helps it to respond to the changing
requirements of a broad array of markets.
Jordan, Knauff & Company ("JKC"), an investment bank in Chicago,
Illinois, served as advisor to Royal Lock in the sale of its assets to
The Eastern Company. JKC specializes in advising companies with $15 to
$150 million in revenues regarding acquisitions, sales and the private
placement of debt and equity capital.
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 results
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 or
John L. Sullivan III, 203-729-2255
SOURCE: The Eastern Company