NACCO Industries, Inc. (Cleveland, Ohio, U.S.) said today that its board approved a plan to spin off the Hamilton Beach/Proctor-Silex business to NACCO stockholders. The spin-off will establish this company, which will be known as Hamilton Beach, Inc., as an independent public company in the small electric household and commercial appliance industries. Hamilton Beach, Inc. will apply to list its Class A common stock on the New York Stock Exchange.
Dr. Michael J. Morecroft, Hamilton Beach's current president and CEO, will continue to lead Hamilton Beach as president and CEO following the spin-off. Dr. Morecroft has more than 30 years of experience in the U.S. and European small electric household appliance industry, and he and his team have a proven track record of consistently improving operations and generating significant cash flow.
"The spin-off is strategically compelling in that it is expected to create the opportunity for significant value enhancement for our stockholders and accomplish important business objectives for Hamilton Beach," said Alfred M. Rankin, Jr., NACCO chairman, president and CEO. "We believe NACCO stockholders will benefit from direct ownership in Hamilton Beach, a strong, established company with leading brand names and a proven management team. Further, Hamilton Beach will have greater flexibility to pursue strategic growth opportunities and enhanced access to the equity and debt capital markets."
It is anticipated that in connection with the spin-off, Rankin will become the non-executive chairman of Hamilton Beach's board of directors. The spin-off is expected to be completed by the end of June 2007.
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