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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): March 30, 1998
GERBER SCIENTIFIC, INC.
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(Exact name of Registrant as
specified in its charter)
CONNECTICUT 1-5865 06-0640743
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or File No.) Identification No.)
organization)
83 Gerber Road West, South Windsor, Connecticut 06074
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(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area (860) 644-1551
code: ---------------
Not applicable
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(Former name or former address, if changes since last report)
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Item 5. Other Events.
See the following press release, dated March 30, 1998, announcing
Gerber Scientific, Inc.'s agreement to sell its Gerber Systems
Corporation unit to BARCO, Inc.
Contact: Gary K. Bennett For Immediate Release
(860) 648-8004 March 30, 1998
Gerber Scientific, Inc. to Sell Gerber Systems Unit to
BARCO, Inc.
South Windsor, CT - Gerber Scientific, Inc. (NYSE: GRB)
announced today that it has agreed to sell its Gerber Systems
Corporation ("Gerber Systems") unit to BARCO, Inc. ("BARCO"), the
U.S. arm of BARCO of Belgium, for an undisclosed cash payment and
royalties on future sales of certain products. Gerber Systems,
based in South Windsor, Connecticut, manufactures computer-to-
plate ("CTP") imaging systems for the printing industry and
electronic fabrication systems used in manufacturing printed
circuit boards ("PCB"). The unit had sales of approximately $45
million in fiscal year 1997, but had been incurring losses in the
CTP business.
George M. Gentile, Chairman and Chief Executive Officer of Gerber
Scientific, Inc., said, "The sale of Gerber Systems will enable
us to focus additional resources and management energy on our
fast-growing core businesses in the ophthalmic, signmaking and
specialty graphics, and apparel and flexible goods industries.
Our leadership position in these industries has been enhanced by
our acquisition of Coburn Optical, a manufacturer and distributor
of ophthalmic lens processing equipment and related supplies that
had $74 million in sales last year, as well as our recently
commenced tender offer for Spandex PLC, a UK-based, global
distributor of automated signmaking systems and specialty
graphics which had $167 million in sales in 1997. These two
acquisitions will dramatically expand and diversify our positions
in these rapidly growing, global industries.
"It also is important that Gerber Systems fits well with BARCO's
Graphics Systems business. To the quality color printing
industry, the advanced CTP imaging systems developed by Gerber
Systems represent a significant breakthrough, particularly in
terms of streamlining the pre-press phase, where content is
imaged on printing plates. These advanced systems are expected
to receive added marketing support through BARCO's well-
established imaging equipment and software systems infrastructure
and distribution capability which extend to major markets
throughout the world. For the PCB industry, Gerber Systems' and
BARCO's products are very complementary and Gerber Systems'
powerful distribution channels will enable BARCO to market its
software effectively," said Mr. Gentile.
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Gerber Scientific, Inc. will record a one-time special charge in
its fiscal fourth quarter ending April 30, 1998 to cover the
write-down of certain assets related to Gerber Systems. The
Company estimates this charge will be approximately $25 million
before income taxes, or $.70 per share after taxes. BARCO plans
to relocate Gerber Systems to a nearby facility and retain
approximately 80 percent (159) of the unit's employees. Gerber
Scientific, Inc. will retain the remaining employees.
The Boards of Directors of BARCO and Gerber Scientific, Inc. have
approved the transaction and the companies have filed for the
necessary regulatory approvals. It is expected that the
transaction will close within a few weeks.
Gerber Scientific, Inc. (http://www.gerberscientific.com),
headquartered in South Windsor, Connecticut, is an international
supplier of automated manufacturing systems for a variety of
industries including ophthalmic, signmaking and specialty
graphics, and apparel and flexible goods.
In addition to the historical information contained herein, there
are matters discussed which are considered to be "forward looking
statements." The Private Securities Litigation Reform Act of
1995 provides a "safe harbor" for forward-looking statements.
These forward looking statements involve risks and uncertainties,
including, but not limited to, economic, competitive,
governmental, and technological factors affecting the Company's
operations, markets, products, and services, that could
significantly affect results in the future.
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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 hereunto duly authorized.
GERBER SCIENTIFIC, INC.
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(Registrant)
Date: March 31, 1998 By: / s / Gary K. Bennett
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Gary K. Bennett
Senior Vice President, Finance
and Principal Accounting Officer
