Hathaway makes bid to buy motion control firm

Denver, Colo. – Hathaway Corp. announced Dec. 19 that it was recently picked as the lead bidder to acquire the Industrial Devices Division (IDC) of Automation Solutions International LLC (ASI, Petaluma, Calif.).

ASI is a debtor-in-possession in a pending Chapter 11 case, and the sale of IDC is being negotiated in accordance with bankruptcy procedures, which will be submitted to a bankruptcy court for approval. Hathaway was selected by ASI, its secured creditor and creditors’ committee, as the lead bidder in a process that completed on Dec. 17. Bankruptcy sale procedures call for an auction on Feb. 5, 2002, where other bids will be entertained, if they substantially exceed Hathaway’s undisclosed bid. Sale procedures also provide for a break-up fee equal to 5% of Hathaway’s bid to be paid to Hathaway if the company isn’t the successful bidder. As the lead bidder, Hathaway also retains the right to match any other bid received in the bankruptcy sale process.

IDC was founded in 1975, and offers a range of mechanical and control products for automated positioning applications. IDC’s products are used in many applications requiring control of linear position, thrust, speed or position. Examples of applications of its products include controlling the positioning of giant radio telescopes and plant robotic and industrial automation equipment. IDC pioneered the electric cylinder as a simpler, cleaner, more precise, more controllable and generally more cost-effective alternative to hydraulic and pneumatic positioning technology.

During the last four quarters ending Sept. 30, 2001, IDC had revenues of $14.2 million and a loss of $1.4 million. ASI’s bankruptcy and the general economic slowdown significantly influenced IDC’s financial results.

‘If completed, the acquisition of IDC will be complementary to Hathaway’s motion control products and markets,’ says Dick Smith, Hatyhaway’s president and ceo. ‘With IDC’s products, Hathaway will enhance its ability to offer motion control systems solutions in addition to being able to supply components to OEMs and other suppliers of motion control systems. Once IDC is out from under the influence of bankruptcy and with the strength of its management team, we’re optimistic that IDC will quickly return to profitability.’

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