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Stocks W / Waterpik Technologies
|Subject: Pik received 15 million in private placement||Date: 1/2/2001 11:12 AM|
|Author: TMFSpirit||Number: 9 of 19|
Water Pik Technologies Announces $15 Million Private Equity Investment
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Jan. 2, 2001--
Water Pik Technologies, Inc. (NYSE: PIK), announced today that it has signed an agreement to sell $15 million of common stock to two investment funds managed by Special Value Investment Management, LLC, a private equity investment company controlled by Mr. Michael E. Tennenbaum of Los Angeles, former Vice Chairman, Investment Banking for Bear, Stearns
Co. Under the agreement, the two funds will purchase 1,973,685 newly-issued shares of Water Pik Technologies, Inc. common stock at $7.60 per share under a private placement. The Company anticipates closing the transaction in the next few days, subject to the satisfaction of customary closing conditions.
"We are pleased to be associated with Special Value Investment Management and an experienced investor like Mr. Tennenbaum," said Water Pik Technologies President and CEO, Michael P. Hoopis. "The completion of this transaction will allow us to fulfill the equity offering obligation resulting from our spin-off from Allegheny Technologies Incorporated and fully focus our efforts and resources on the innovative products and programs that will fuel our growth into the future."
Michael E. Tennenbaum of Special Value Investment Management, the manager of the two funds, said, "We are very happy to become the largest shareholder in Water Pik. They have three world class brand names, a dynamic management team and remarkably strong new product development efforts. We hope to achieve great results with Water Pik."
The Company intends to use the additional capital to fund its new product plans and for further development of lower cost manufacturing capabilities.
In July 2000, the Internal Revenue Service (IRS) issued a favorable ruling, supplementing the ruling resulting from the Company's spin-off from its former parent in November 1999, which reduced the amount of equity capital required to be raised by the Company from $50 million to $15 million. The IRS supplemental ruling also provided an extension until April 30, 2001 for the Company to complete the equity offering. After the offering, the Company will have a total of 11,897,370 issued and outstanding shares. Credit Suisse First Boston acted as placement agent for the financing.
Statements contained in this press release which are not historical facts may be considered forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from these forward-looking statements as a result of the risk factors described in the Company's filings with the Securities and Exchange Commission, including, among others, its ability to develop new products and execute its growth strategy, the uncertainty of new product testing and regulatory approvals, the uncertainty that its marketing efforts will achieve the desired results with respect to existing or new products, its dependence on key customers, the seasonal nature of its businesses, the effect of product liability claims and failure to protect its intellectual properties. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this press release will in fact transpire. These forward-looking statements represent the Company's judgment only as of the date of this press release. As a result, the reader is cautioned not to rely on these forward-looking statements. The Company does not have any intention or obligation to update these forward- looking statements.
Water Pik Technologies, Inc. is a leading developer, manufacturer and marketer of innovative personal health care products, pool products and heating systems sold under the Water Pik(R), Laars(R) and Jandy(R) brand names. The Company has developed and introduced many products that are considered the first of their kind and have led to the formation of new markets, including the automatic toothbrush, end-of-faucet water filtration system, pool heater and pulsating shower massage. The Company's products are sold through a variety of channels, including home centers, mass-merchandisers, drug chains and specialty retailers, wholesalers and contractors. Headquartered in Newport Beach, California, the Company operates seven major facilities in the United States and Canada. For more information, visit the Water Pik Technologies, Inc. web site at www.waterpik.com.
Water Pik Technologies, Inc., Newport Beach
Jeff D'Eliscu, 949/719-3700 (office)
or 949/675-9475 (home)
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