Small appliance maker Applica Incorporated announced it is initiating an external process to explore strategic initiatives to enhance shareholder value, including the possible sale or merger of the company.
According to Applica, its board of directors and management believe that, while ongoing operational actions should translate into improved profitability, following their continued review of the company's business, products, and current strategic position, the actions are still needed. As a result, the board of directors has authorized and the company has engaged Banc of America Securities as its financial advisor to assist the board and management in this process.
"Now that our operational improvement initiatives have been developed and are being executed, the company, with Banc of America, intends to build on the work done over the past 2 years and move forward with a robust process to explore all strategic alternatives to enhance shareholder value," said Harry D. Schulman, Applica's president and CEO. "While we believe that Applica's business plan has the potential to deliver enhanced shareholder value over time, the board of directors and I are also enthusiastic about the opportunity to pursue strategic initiatives to better deliver shareholder value."
Applica emphasized that there can be no assurance that any transaction will occur or, if one is undertaken, of its potential terms or timing. Applica may not update its progress or disclose developments with respect to potential strategic initiatives unless the board of directors has approved a definitive course of action or transaction.
to Daily News