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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 (Date of earliest event reported) July 9, 1998 (July 2, 1998).
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GENERAL BINDING CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 0-2604 36-0887470
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(State or other juris- (Commission (IRS Employer
diction of in- File Number) Identification No.)
corporation)
One GBC Plaza
Northbrook, Illinois 60062
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 272-3700
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Form 8-K Current Report
For the Month of July, 1998
Item 5. Other Events.
On July 6, 1998 the Registrant announced that it had completed the sale
of the business and substantially all of the assets of its U.S. RingBinder
Corp. subsidiary. This transaction represents the Registrant's exit from the
business of manufacturing and distributing metal ring elements which are used in
looseleaf binders and similar products. Proceeds from the sale of this business
will be used to reduce outstanding debt of the Registrant.
A one-time pre-tax charge related to the sale ranging from $2.9 million
to $3.5 million, or $0.11 - $.13 net per diluted share, will be recorded in the
Registrant's earnings for the second quarter ended June 30, 1998.
Item 7. Exhibits.
1. Press Release of July 6, 1998.
SIGNATURES
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 thereunto duly authorized.
General Binding Corporation
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(Registrant)
Date: July 9, 1998 /s/ Steven Rubin
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Steven Rubin,
Vice President, Secretary
and General Counsel
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EXHIBIT 99.1
GBC NEWS
Contact: Paul J. Bors
Corporate Treasurer
(847) 291-6187
GBC ANNOUNCES SALE OF U.S. RINGBINDER BUSINESS
Northbrook, IL, July 6, 1998 -- General Binding Corporation (Nasdaq:
GBND) announced today that it has sold its U.S. RingBinder business. Although
the terms of the transaction were not disclosed, GBC expects to use proceeds
from the sale of this loose-leaf ringbinder metal business to reduce its
outstanding debt. A one-time charge related to the sale of about $0.11-$0.13
per diluted share will be recorded in the Company's second quarter earnings.
GBC, which acquired U.S. RingBinder in 1977, said that the transaction
represents the sale of a non-core asset, and that it demonstrates a continuation
of the Company's ongoing strategy to concentrate its investments and efforts in
its current four core businesses: Office Products, Document Finishing, Films and
Emerging Markets.
GBC is an innovative global technology leader in document finishing,
film lamination, visual communications and paper shredder products. GBC's
products are marketed in over 115 countries under the GBC, Quartet, Ibico,
VeloBind, Shredmaster, Bates, Sickinger, Pro-Tech, and Fordigraph names and are
used in the commercial, business, education, home office and government markets.
This press release includes forward-looking statements involving
uncertainties and risks, and there can be no assurance that actual results will
not differ from the Company's expectations. The words "should," "believe,"
"anticipates," "plans," "may," "expects" and other expressions that indicate
future events and trends identify forward-looking statements. Factors that could
cause materially different results include, among other things, competition
within the office products and lamination film products markets, effects of
general economic conditions, issues associated with the integration of
recently-acquired operations, the ability of the Company's distributors to
successfully market and sell the Company's products and other risks described in
the Company's filings with the Securities and Exchange Commission. The Company
assumes no obligation to update its forward-looking statements.
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