EXHIBIT 99.1
NEWS RELEASE
COMPANY CONTACT:
John E. Reed, Chairman of the Board
(413) 568-9571
MESTEK, INC. AND ALPHA TECHNOLOGIES GROUP, INC. ANNOUNCE EXECUTION
OF DEFINITIVE AGREEMENT FOR PURCHASE AND SALE OF MESTEK'S
ALUMINUM HEAT SINK BUSINESS
September 19, 2000 -- Mestek, Inc. (NYSE: MCC) and Alpha Technologies
Group, Inc. (NASDAQ: ATGI) jointly announced today the signing of a definitive
agreement for the purchase by Alpha of Mestek's stock in its National Northeast
("NNE") subsidiary, which is engaged in the aluminum heat sink business in
Pelham, New Hampshire. Mestek currently owns approximately 89% of the
subsidiary's stock, and anticipates acquiring the balance immediately before
Closing. The purchase price for all of the stock and the repayment of all of the
subsidiary's debt is $52 million. Closing of the transaction is subject to
Hart-Scott-Rodino clearance, financing and other customary conditions. The
parties expect the transaction to close later this year.
For the first six months of 2000, NNE achieved EBITDA of approximately
$3.1 million, on revenues of approximately $18.9 million. "The acquisition of
NNE will bring new customers and products to our business. In addition, NNE's
state-of-the-art facility in Pelham will significantly expand Alpha's extrusion
capabilities, setting the foundation for further growth. This transaction is an
important step in our plan to focus Alpha's resources exclusively on building
our thermal management business," Lawrence Butler, Alpha's chairman and chief
executive officer, stated.
Mestek is a diversified manufacturer of heating, ventilating and air
conditioning equipment, metal hose and hose products and metal forming
machinery. John E. Reed, Chairman of Mestek, stated, "The divestment is in
keeping with Mestek's policy to concentrate its resources in its core areas."
Alpha Technologies Group, Inc. designs, manufactures and sells thermal
management products, principally heat sinks, that dissipate unwanted heat
generated by electronic components.
Statements made in this press release which are not historical facts, including
projected sale proceeds and statements of plans, objectives and expectations,
are forward looking statements that involve risks and uncertainties and are
subject to the safe harbor created by the Private Securities Litigation Reform
Act of 1995. The sale transaction is subject to several conditions, including
regulatory approval and the securing of financing by Alpha. No assurance can be
given that the transaction will be completed on a timely basis, if at all.
Readers are cautioned not to place undue reliance on the forward-looking
statements contained in this press release, which speak only as of their dates.
