Bristol manufacturer Barnes Group Inc. must sell its Barnes Europe Distribution Unit for $25.7 million to a German tool supplier sometime before February or it will owe a $500,000 “kill fee,” according to Barnes’ filing with the U.S. Securities and Exchange Commission.
Barnes announced its intention to sell the unit on Monday to Berner SE, based near Stuttgart, but did not disclose the sale price. The distribution unit is headquartered in Switzerland and comprised of subsidiaries such as Kent, BD France and Toolcom.
Following the sale, Barnes will record a pretax loss of $15 million to $20 million, due to the writedown of goodwill stemming from the loss of the distribution business, said William Pitts, Barnes’ director of planning and investor relations.
In countries such as France, Barnes must consult with unions and other employee organizations before the sale is final.
If Barnes fails to conclude the sale by Berner’s Jan. 31 offer deadline, then the Bristol manufacturer will owe $500,000 for its expenses, according to the SEC filing.
