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 December 21, 1995
(Date of earliest event reported) December 20, 1995
AUGAT INC.
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(Exact name of registrant as specified in its charter)
Massachusetts
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(State or other Jurisdiction of incorporation)
1-6176 04-2022285
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(Commission File Number) (IRS Employer Identification No.)
89 Forbes Boulevard
P.O. Box 448
Mansfield, Massachusetts 02048
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
(508) 543-4300
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Item 5 - Other Events
On December 20, 1995, the Registrant announced that it
plans to restructure its Interconnect Products and Automotive
Divisions and said results for the Fourth Quarter ended December
31, 1995 will include a restructuring charge and other charges
totaling $23 million pretax ($15.6 million after taxes, or $.78
per share). Enclosed as Exhibit 1 is a copy of the news release
covering the above item.
On December 20, 1995, the Registrant announced that it has
signed a letter of intent to acquire certain electronic assets of
Lindsay Specialty Products, a leading manufacturer and global
provider of RF distribution products for the cable television,
wired communications and wireless industries. Enclosed as
Exhibit 2 is a copy of the news release covering the above item.
Item 7 - Financial Statements and Exhibits
(a) Financial Statements - None
(b) Exhibits 1 and 2 - The Registrant's news releases
dated December 20, 1995.
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 thereto duly authorized.
Augat Inc.
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(Registrant)
By: Ellen B. Richstone
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Ellen B. Richstone
Vice President and
Chief Financial Officer
Date: December 21, 1995<PAGE>
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EXHIBIT 1
FOR IMMEDIATE RELEASE
Contact:
Ellen B. Richstone James R. Buckley
Chief Financial Officer Account Executive
Augat Inc. Sharon Merrill Associates, Inc.
508/543-4300 617/262-1800
AUGAT INC. ANNOUNCES RESTRUCTURING TO IMPROVE PROFITABILITY
MANSFIELD, Mass., December 20, 1995 -- Augat Inc. (NYSE:AUG)
today announced that it plans to restructure its Interconnect
Products Division (IPD) and rationalize manufacturing in its
Automotive Division in order to improve future profitability of
those operations. The Company said results for the fourth
quarter ended December 31, 1995 will include a restructuring
charge and other charges totaling $23 million pretax ($15.6
million after taxes, or $0.78 per share). These charges are
related to the consolidation of manufacturing operations in its
Interconnect Products and Automotive Divisions as well as to the
costs associated with exiting several low-margin, commodity
interconnect product lines. The total cash impact of the
restructuring, which will occur over the next 24 months, is
expected to be less than $4 million.
Commenting on the restructuring, William R. Fenoglio, Chief
Executive Officer of Augat, said, "This decision will reinforce
the strategy we outlined earlier this year to have IPD develop a
more focused product line and to continue our efforts to
eliminate costs and capacity in both Automotive and IPD, wherever
possible to remain competitive. This decision represents a two
and one-half year payback and will not have a significant impact
on Augat's cash flow. More importantly these changes should
enable our operations to achieve improved profitability over both
the near and long term."
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"With approximately half of the operations-related charges
attributable to IPD, this division will operate with a more
focused product line strategy, concentrating on areas that have
strong market share positions," said Fenoglio. "Once this
realignment has been completed, we believe IPD will be better
positioned to achieve returns in line with our future
expectations related to creating shareholder value."
Approximately $9 million of the P&L charge attributable to
the Interconnect Products Division relates to the withdrawal from
certain low-margin, commodity product lines; the balance
represents costs associated with transferring production of IC
sockets from the Mashpee, Massachusetts facility to the Lugano,
Switzerland and Sanford, Maine operations and closing the Mashpee
plant.
The restructuring in the Automotive Division involves a
relocation, in phases, of all battery cable and wiring production
from Montgomery, Alabama to other Augat wiring and component
locations during 1996.
Approximately 800 Augat employees will be affected by the
restructuring. Some will be asked to relocate and the balance
will be subject to layoffs; however, the majority of the planned
layoffs are not expected to occur until 1996.
"Given the disappointments in 1995 directly attributable to
the lower domestic automotive volumes and the priority of moving
ahead as quickly as possible to improve our overall operating
results, we have elected to take these actions now," said
Fenoglio. "While the key benefits of the moves will be
structural and reflected in our long-term competitive position,
we believe that the positive impact on our financial performance
in 1996 due to partial-year benefits from these actions should be
$0.15 per share or more."
One of the largest manufacturers of connector products in
the world, Augat Inc. is pursuing a strategy for growth in
communications, automotive, computer and industrial markets
through customer partnerships, new-product introductions,
strategic acquisitions and ongoing productivity measures.
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Exhibit 2
FOR IMMEDIATE RELEASE
Contact:
Ellen B. Richstone James R. Buckley
Chief Financial Officer Account Executive
Augat Inc. Sharon Merrill Associates, Inc.
508/543-4300 617/262-1800
AUGAT INC. ANNOUNCES INTENT TO ACQUIRE LINDSAY SPECIALTY PRODUCTS
Leading radio frequency distribution products manufacturer
will strengthen Augat's communications business
MANSFIELD, Mass., December 20, 1995 -- Augat Inc.
(NYSE:AUG), one of the world's largest manufacturers of connector
products, today announced that it has signed a letter of intent
to acquire certain electronic assets of Lindsay Specialty
Products. These represent annual sales of approximately $15
million. Financial terms of the agreement were not disclosed.
The transaction is expected to be completed in January 1996.
Established in 1953, Lindsay Specialty Products is primarily
a leading manufacturer and global provider of RF distribution
products for the cable television (CATV), wired communications
and wireless industries. Lindsay Specialty Products, located in
Lindsay, Canada, manufactures products that are essential to the
improved performance of integrated CATV and telephony systems, as
well as hybrid fiber coaxial networks.
"Lindsay is a recognized leader with strong technology and
excellent patent positions in high-performance communication
components," said William R. Fenoglio, Augat's President and
Chief Executive Officer. "Lindsay's passive products line,
including the industry leading power-passing tap products, will
allow us to offer our customers a more complete solution when
they are constructing and rebuilding high bandwidth, two-way
communications systems. Lindsay products complement our existing
lines of LRC connectors, RF amplifiers and Augat Photon optical
communications equipment."
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John Thomas, Founder and Chairman of Lindsay Specialty
Products, said, "The Lindsay acquisition by Augat will allow us
to serve the world market with the support of a strong
manufacturing, marketing, and technical support organization. We
are very pleased with this announcement."
Fenoglio stated, "Lindsay products and organizational
structure will be aligned with Augat's Communications Products
Business. This acquisition represents another step in our
strategy to focus our growth and expand our position in the
worldwide telecommunications and cable television markets."
One of the largest manufacturers of connector products in
the world, Augat Inc. is pursuing a strategy for growth in
communications, automotive, computer and industrial markets
through customer partnerships, new-product introductions,
strategic acquisitions and ongoing productivity measures. <PAGE>
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