<PAGE> 1
UNITED STATES
Securities And Exchange Commission
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report September 10, 1996
----------------------------------------------
(Date of earliest event reported)
COMMERCIAL INTERTECH CORP.
--------------------------
(Exact name of registrant as specified in its charter)
Ohio 0-588 34-0159880
- -------------- ---------- ------------
State or other Commission IRS Employer
jurisdiction of File Identification
incorporation Number No.
1775 Logan Avenue, Youngstown, Ohio 44501-0239
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(Address of principal offices) (Zip Code)
Registrant's telephone number, including area code 330-746-8011
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Item 2. Acquisition or Disposition of Assets
On July 29, 1996, the Board of Directors of Commercial Intertech
Corp. authorized management to proceed with the spin-off of the fluid
purification business by declaring a dividend distribution of 100% of
the common stock of Cuno Incorporated ("CUNO") on a pro-rata basis to
the holders of Commercial Intertech common shares (the
"Distribution"). Each holder of record of Commercial Intertech common
shares at the close of business on September 10, 1996, the record date
for the Distribution, received one share of CUNO Common Stock for
every one share of Commercial Intertech common share. No fractional
shares of CUNO were issued.
In connection with the spin-off, the Board of Directors of
Commercial Intertech declared a dividend of approximately $35,675,000
payable from the Cuno Incorporated locations to the Company, and
immediately prior to the Distribution, Cuno Incorporated will assume
$30,000,000 of Commercial Intertech's debt in the form of a dividend.
Commercial Intertech and CUNO have entered into a Tax Allocation
Agreement in connection with the distribution. In addition, the
Company and CUNO have entered into a Distribution and Interim Services
Agreement which provides that certain services which have historically
been provided to CUNO by the Company will continue to be provided
following the Distribution Date, at rates specified in such
agreements, for a period of up to twelve months.
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Item 7. Financial Statements and Exhibits
(a) Pro Forma Financial Information
Page Numbers
- ---- -------
Introduction to Pro Forma Consolidated Condensed Financial Information
Pro Forma Consolidated Condensed Balance Sheet as of July 31, 1996
Pro Forma Consolidated Condensed Statement of Income for the Nine
Months Ended July 31, 1996
Pro Forma Consolidated Condensed Statement of Income for the Year
Ended October 31, 1995
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Commercial Intertech Corp.
Unaudited Pro Forma Consolidated Financial Information
The historical consolidated financial statements of
Commercial Intertech Corp. include the results of operations and
financial position of the businesses constituting Commercial
Intertech Corp. and Subsidiaries. The pro forma consolidated
condensed balance sheet (unaudited) as of July 31, 1996 has been
prepared assuming the spin-off and distribution of Cuno,
Incorporated occurred as of that date. The pro forma consolidated
condensed statement of income (unaudited) for the nine months
ended July 31, 1996 has been prepared assuming the spin-off
occurred as of November 1, 1995. The pro forma consolidated
condensed statement of income (unaudited) for the year ended
October 31, 1995 has been prepared assuming the spin-off and
distribution occurred as of November 1, 1994. The pro forma
financial statements have been prepared by adjusting the
historical statements for the effect of costs, expenses, assets
and liabilities which might have occurred had the distribution
been effected as of the dates indicated. These pro forma
financial statements are not necessarily indicative of the
consolidated results of operations or financial position that
would have existed had the distribution occurred on the dates
indicated.
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COMMERCIAL INTERTECH CORP. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED CONDENSED BALANCE SHEETS (unaudited)
July 31, 1996
<TABLE>
<CAPTION>
(Thousands of dollars)
Commercial
Intertech
Pro Form Corp
Historical Adjustments(A) Pro Forma
---------- ----------- ---------
<S> <C> <C> <C>
ASSETS
- ------
CURRENT ASSETS:
Cash and cash equivalents............ $ 53,312 $ (4,682) $ 48,630
Accounts receivable, less allowance.. 109,625 (40,335) 69,290
Inventories.......................... 73,361 (17,455) 55,906
Deferred income tax benefits......... 18,509 (5,552) 12,957
Prepaid expenses..................... 10,180 (2,364) 7,816
Loan receivable from affiliate....... 0 30,000 (C) 30,000
Dividend receivable from affiliate... 0 35,675 (B) 35,675
--------- --------- ---------
TOTAL CURRENT ASSETS 264,987 (4,713) 260,274
PROPERTY, PLANT AND EQUIPMENT 291,649 (94,703) 196,946
Less allowance for depreciation...... 147,172 (46,744) 100,428
--------- --------- ---------
144,477 (47,959) 96,518
NONCURRENT ASSETS:
Intangible assets.................... 29,697 (20,137) 9,560
Pension assets....................... 37,118 (3,220) 33,898
Other assets......................... 6,235 (1,522) 4,713
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TOTAL NONCURRENT ASSETS 73,050 (24,879) 48,171
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TOTAL ASSETS $ 482,514 $ (77,551) $ 404,963
========== ========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES:
Bank loans........................... $ 22,530 $ (11,264) $ 11,266
Accounts and notes payable........... 131,364 (30,622) 100,742
Accrued income taxes................. 8,028 (3,164) 4,864
Dividends payable.................... 2,418 0 2,418
Current portion of long-term debt.... 9,219 (1,009) 8,210
Payable to affiliates................ 0 29,051 29,051
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TOTAL CURRENT LIABILITIES 173,559 (17,008) 156,551
NONCURRENT LIABILITIES:
Long-term debt....................... 127,990 (3,403) 124,587
Deferred income taxes................ 18,400 (3,940) 14,460
Postretirement benefits.............. 24,188 (2,714) 21,474
--------- --------- ---------
TOTAL NONCURRENT LIABILITIES 170,578 (10,057) 160,521
SHAREHOLDERS' EQUITY:
Preferred stock, no par value:
Series A 0 0 0
Series B 24,172 0 24,172
Common stock, $1 par value: 13,571 0 13,571
Capital surplus 0 0 0
Retained earnings 110,729 (44,340) (D) 66,389
Deferred compensation (17,594) 0 (17,594)
Translation adjustment 7,499 (6,146) 1,353
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TOTAL SHAREHOLDERS' EQUITY 138,377 (50,486) 87,891
--------- --------- ---------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 482,514 $ (77,551) $ 404,963
========= ========= =========
</TABLE>
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COMMERCIAL INTERTECH CORP. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF INCOME (unaudited)
Nine Months Ended July 31, 1996
<TABLE>
<CAPTION>
(Thousands of dollars)
Commercial
Intertech
Corp
Pro Forma Pro Forma
Historical Adjustments(A) Results
---------- ----------- ---------
<S> <C> <C> <C>
Net Sales ............................... $ 474,834 $(134,636) $ 340,198
Less costs and expenses
Cost of products sold ................ 331,688 (79,602) 252,086
Selling, administrative
and general expense ................ 107,694 (41,252) 66,442
Nonrecurring distribution
costs .............................. 6,513 (2,876) 3,637
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445,895 (123,730) 322,165
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Operating Income ........................ 28,939 (10,906) 18,033
Nonoperating income (expense):
Interest income ...................... 767 14 781
Interest expense ..................... (4,422) 190 (4,232)
Gain on sale of properties ........... 940 0 940
Foreign currency gains
(losses) ........................... (144) 102 (42)
Other ................................ 973 90 1,063
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(1,886) 396 (1,490)
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Income from continuing
operations before income
taxes ................................ 27,053 (10,510) 16,543
Income taxes ............................ 10,328 (4,778) 5,550
--------- --------- ---------
Income from continuing
operations ........................... $ 16,725 $ (5,732) $ 10,993
========= ========= =========
Earnings per share of common stock:
Income from continuing operations:
Primary ............................ $ 0.98 $ 0.61
Fully Diluted ...................... 0.93 0.59
</TABLE>
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COMMERCIAL INTERTECH CORP. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF INCOME (unaudited)
Year Ended October 31, 1995
<TABLE>
<CAPTION>
(Thousands of dollars)
Commercial
Intertech
Corp
Pro Forma Pro Forma
Historical Adjustments Results
---------- ----------- ---------
<S> <C> <C> <C>
Net Sales ............................... $ 621,836 $(162,699) $ 459,137
Less costs and expenses
Cost of products sold ................ 436,857 (99,735) 337,122
Selling, administrative
and general expense ................ 139,729 (52,059) 87,670
Nonrecurring distribution
costs .............................. 0 0 0
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576,586 (151,794) 424,792
--------- --------- ---------
Operating Income ........................ 45,250 (10,905) 34,345
Nonoperating income (expense):
Interest income ...................... 1,966 (129) 1,837
Interest expense ..................... (6,912) 674 (6,238)
Gain on sale of properties ........... 0 0 0
Foreign currency gains
(losses) ........................... (779) 449 (330)
Other ................................ 417 348 765
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(5,308) 1,342 (3,966)
--------- --------- ---------
Income from continuing
operations before income
taxes ................................ 39,942 (9,563) 30,379
Income taxes ............................ 9,559 (3,462) 6,097
--------- --------- ---------
Income from continuing
operations ........................... $ 30,383 $ (6,101) $ 24,282
========= ========= =========
Earnings per share of common stock:
Income from continuing operations:
Primary ............................ $ 1.82 $ 1.42
Fully Diluted ...................... 1.72 1.35
</TABLE>
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Commercial Intertech Corp.
Notes to the Pro Forma Consolidated Condensed Financial Statements
A. To eliminate the historical income/expense and balance sheet items of Cuno
Incorporated for the respective periods presented.
B. To record the dividend receivable from Cuno Incorporated. The dividend was
declared immediately prior to the distribution.
C. To record the $30,000,000 of debit assumed by Cuno Incorporated transacted
in the form of a dividend.
D. To record the proposed distribution of 13,566,432 common shares of Cuno
Incorporated. Each shareholder of Commercial Intertech Corp. will receive
one share of Cuno Incorporated for each share of Commercial Intertech Corp.
stock owned.
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Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereto duly authorized.
COMMERCIAL INTERTECH CORP.
Date: September 23, 1996 By /s/ Hubert Jacobs van Merlen
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Hubert Jacobs van Merlen
Senior Vice President and
Chief Financial Officer
