Enhances Liquidity and Working Capital
Will Acquire Control of Third Modular Plant in Maine
Oakdale, April 03, 2019 (GLOBE NEWSWIRE) -- KBS Builders, Inc. (“KBS”), a division of ATRM Holdings, Inc. (ATRM) (“ATRM” or the “Company”) announced today that it has entered into a sale-leaseback transaction for two buildings it owned in Maine. This transaction enhances KBS’s financial liquidity and will allow for debt reduction as well as greater investment in working capital, enhancing KBS’s ability to serve clients’ needs. In addition, KBS expects to enter into a lease for a third plant in Maine based in the town of Oxford (the “Oxford Plant”) that was previously leased to a competitor of KBS.
The original two KBS plants are located in South Paris and Waterford, Maine, respectively, and were sold to Digirad Corporation (“Digirad”) for their appraised value as determined by an independent appraisal service. The two plants are now leased by KBS from Digirad at market rates. Digirad also announced the purchase of the Oxford Plant, a modular manufacturing facility that was previously leased to a competitor of KBS. KBS expects to immediately enter into a lease agreement for this plant from Digirad after which time it will have operating control of all three plants.
All three of these plants were built to construct modular buildings for residential, multi-family, and commercial real estate development projects and are all within 15 miles of each other. The three plants have a combined manufacturing footprint of over 200,000 square feet and, when fully utilized, are capable of producing more than 1,400 boxes per year. KBS believes that controlling these three plants serving the same industry within close proximity to each other creates significant strategic value and will allow it to more effectively meet clients’ needs and grow with the market. KBS also believes these are the only three significant modular manufacturing plants constructing real estate projects within a radius of more than a hundred miles. With this enhanced manufacturing capability and financial liquidity, KBS hopes to be the construction partner of choice for real estate developers and home builders in the northeast.
About ATRM Holdings, Inc.
ATRM Holdings, Inc. (ATRM) is a holding company operating through its wholly-owned subsidiaries KBS Builders, Inc., EdgeBuilder, Inc., and Glenbrook Building Supply, Inc. KBS Builders, Inc. manufactures modular housing units for commercial and residential real estate development projects. EdgeBuilder, Inc. and Glenbrook Building Supply, Inc. manufacture wall panels and supply general contractors with lumber, windows, doors, and other building supplies used in both residential and commercial construction projects. ATRM is based in Oakdale, Minnesota, with facilities in South Paris and Waterford, Maine, Oakdale, Minnesota, and Prescott, Wisconsin. ATRM’s website is www.atrmholdings.com. KBS’s website is www.kbsbuildersinc.com.EdgeBuilder’s website is www.edgebuilderwallpanels.com and Glenbrook’s website is www.glenbrooklumber.com.
This press release may contain “forward-looking statements”, as such term is used within the meaning of the Private Securities Litigation Reform Act of 1995. These “forward-looking statements” are not based on historical fact and involve assessments of certain risks, developments, and uncertainties in the Company’s business looking to the future. Such forward-looking statements can be identified by the use of terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “estimate”, “intend”, “continue”, or “believe”, or the negatives or other variations of these terms or comparable terminology. Forward-looking statements may include projections, forecasts, or estimates of future performance and developments. These forward-looking statements are based upon assumptions and assessments that the Company believes to be reasonable as of the date hereof. Whether those assumptions and assessments will be realized will be determined by future factors, developments, and events, which are difficult to predict and may be beyond the Company’s control. Actual results, factors, developments, and events may differ materially from those the Company assumed and assessed. Risks, uncertainties, contingencies, and developments, including those discussed in the Company’s filings with the Securities and Exchange Commission, could cause the Company’s future operating results to differ materially from those set forth in any forward-looking statement. There can be no assurance that any such forward-looking statement, projection, forecast or estimate contained can be realized or that actual returns, results, or business prospects will not differ materially from those set forth in any forward-looking statement. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.
Contact: Dan Koch, CEO
ATRM Holdings, Inc.