Baldwin Announces Restructuring Plan Associated With The Acquisition Of Oxy-Dry Corporation

Shelton, CT - Baldwin Technology Company, Inc. a global manufacturer of printing press accessories and control equipment, announced recently that it is implementing plans to restructure and integrate the operations of the recently acquired Oxy-Dry group and some of Baldwin's existing operations.

The company estimates that the total cost of implementing the restructuring and integration plan will be approximately $4.6M, of which $1.0M will be recorded as a pre-tax charge in Baldwin's second quarter ending December 31, 2006. An additional $3.0M will be recorded as liabilities in the company's allocation of purchase price in connection with the acquisition. The balance will be charged as incurred during the remainder of Baldwin's 2007 and 2008 fiscal years.

The estimated savings from the restructuring and integration plan is expected to be about $3.7M annually. These net savings are a consequence of a reduction in total employment levels and a consolidation of facilities in the Americas and Europe.

Baldwin President and COO Karl S. Puehringer said, "The objective of the restructuring and integration plan is to achieve operational efficiencies and eliminate redundant costs resulting from the acquisition. We also want to achieve greater efficiency in sales, marketing, administrative and operational activities, primarily in Germany, the United States and United Kingdom."

Chairman and CEO Gerald A. Nathe added, "Because Oxy-Dry's business has been slower than expected, plans for the restructuring and integration of Baldwin and Oxy-Dry were initiated immediately following the acquisition last month. We expect to substantially complete implementation of these plans before the end of our current fiscal year ending June 30, 2007. We believe that the full impact of the savings will be achieved in Baldwin's fiscal 2008." .

For more information, you can visit http://www.baldwintech.com.

SOURCE: Baldwin Technology Company, Inc