Nashua Corp. to Sell NH Real Estate for 18.5 Million
Nov. 8, 2006 - Nashua Corp. yesterday said it has entered into a purchase and sale agreement with Equity Industrial Partners Corp. relating to the sale of its real estate holdings in Merrimack, New Hampshire.
According to Nashua, the holdings consist of two buildings, one with approximately 105,000 square feet and the other with approximately 480,000 square feet, plus approximately 48 acres of land.
The total sales price of the real estate will be $18.5 million, Nashua said. The deal is slated to close by November 29, 2006.
Under the terms of the deal, Nashua will lease back approximately 160,000 square feet of space to operate its coated paper business.
"The transaction is part of our plan to monetize under-utilized assets and to reduce our operating cost," said Thomas Brooker, Nashua's president and CEO.
"Over the past nine months our coating operations team has spent time and money on the consolidation of space within the facility. We believe completing the sale and the consolidation will allow them to focus their full attention and efforts on the growth and profitability of our coating business," Brooker added.
The company expects to utilize the proceeds from the transaction to reduce debt and fund its stock repurchase plan.
Nashua Corp. manufactures and markets a wide variety of specialty imaging products and services to industrial and commercial customers to meet various print application needs. The company's products include thermal coated papers, pressure-sensitive labels, bond, point of sale, ATM and wide format papers, entertainment tickets, and ribbons for use in imaging devices.
SOURCE: Nashua Corp.