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): November 1, 1996
Commission file number 33-43082
ZIEGLER LEASING CORPORATION
(Exact name of registrant as specified in its charter)
Wisconsin 39-1148992
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
215 North Main Street, West Bend, Wisconsin 53095
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (414) 334-5521
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Item 5.Other Events.
The Ziegler Companies, Inc., a financial services holding
company headquartered in West Bend, Wisconsin, has signed a nonbinding
letter of intent to sell its Ziegler Leasing Corporation subsidiary to a
major financial services company. The subsidiary is engaged in the
business of leasing diagnostic, laboratory and operating equipment to
healthcare providers, as well as leasing commercial equipment to
manufacturing concerns and others. The proposed transaction, which is
expected to be completed in the fourth quarter, is subject to the
completion by the buyer of its due diligence investigation, the approval of
its board, Hart-Scott-Rodino approval, and the negotiation of a definitive
purchase agreement.
The proposed transaction is valued at approximately $17 million, and
will be paid in cash at closing. The after-tax net proceeds of the sale
which Ziegler Leasing Corporation expects to realize will be approximately
$11 million. The book value of Ziegler Leasing Corporation as of September
30, 1996 also approximated $11 million. In 1995, Ziegler Leasing
Corporation generated revenues of approximately $10.5 million, and net
income of $716,379. Ziegler Leasing Corporation's net income amounted to
18% of the consolidated income of The Ziegler Companies, Inc. in 1995, and
38% of the consolidated income in 1994.
The Ziegler Companies, Inc. believes that the sale of this subsidiary
is an appropriate method to further the corporate focus on its core
securities business. The Ziegler Companies, Inc. anticipates reinvesting
the proceeds of the sale in securities related activities, or if suitable
reinvestment opportunities are not identified within a reasonable period of
time, using the monies to effect a special dividend, distribution, or a
partial buyback of its stock through open market purchases or tender offer.
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.
ZIEGLER LEASING CORPORATION
By: /s/ Mark E. Sedlmeier
Mark E. Sedlmeier, President
Dated: November 1, 1996
