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Letter to the Editor
Tuesday November 4
Apogee Signs Definitive Agreement for Sale of Harmon AutoGlass to Glass Doctor
Apogee Enterprises, Inc., a provider of glass products and services for the architectural, large-scale optical and automotive industries, has entered into a definitive agreement to sell the stock of Harmon AutoGlass, its retail auto replacement glass business, to Synergistic International, Inc., doing business as Glass Doctor, a subsidiary of The Dwyer Group.The transaction is expected to close by December 31, 2003, subject to customary conditions. Terms were not disclosed.
"This sale will allow Apogee management to increase our focus on opportunities in our architectural glass products and services, and picture framing glass businesses where we have solid market positions and greater opportunities for profitable growth," said Russell Huffer, Apogee chairman, president and chief executive officer. "Although Apogee's roots are in the retail auto glass business, Harmon AutoGlass is no longer a strategic fit for Apogee due to changes in its market conditions. We feel this is a positive decision for Apogee and its shareholders, and for Harmon AutoGlass.
"The sale is an attractive opportunity for Glass Doctor, which currently provides auto replacement glass services through more than 100 locations nationally," he said. "They are dedicated to this industry, including participation in auto glass insurance claims management."
"Harmon AutoGlass, respected for its quality installation technicians and customer service, will complement our current Glass Doctor family and allow us to be a stronger national competitor," said Dina Dwyer-Owens, president and chief executive officer of The Dwyer Group. "In addition, we will also be able to effectively compete for national insurance business with the addition of the Harmon AutoGlass shops and expertise in servicing these accounts."
Glass Doctor plans to convert the majority of the purchased facilities to franchises.
Apogee is now reporting Harmon AutoGlass in discontinued operations, which will reflect a charge of $0.25 to $0.32 per share, or $7 to $9 million, in fiscal 2003 for the transaction and transition costs of exiting retail auto glass, as previously stated. Apogee anticipates that the transaction will be neutral from a cash flow perspective. This includes the charge of $0.18 per share or $5.0 million taken in the second quarter.
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