MTI Global Inc.
TSX : MTI

MTI Global Inc.

May 04, 2009 09:01 ET

MTI Global Completes Sale of the MTI Leewood and N.A. Silicone Assets

MISSISSAUGA, ONTARIO--(Marketwire - May 4, 2009) - MTI Global Inc. (TSX:MTI) announced today, that it has completed the sale of the majority of MTI Leewood's assets and the N.A. Silicone's Richmond, Virginia plant Connecticut-based Rogers Corporation for an all cash purchase price of US$7.4 million. Proceeds from the previously announced (March 24, 2009) transaction, have been used to reduce MTI Global's debt obligations from approximately C$18.6 million to approximately C$10.8 million, a 42% reduction.

As previously stated, MTI Global has made the decision to focus on Aerospace, the Company's core business and major contributor of revenue and profits over the past years. Aerospace has achieved a world leadership position in insulation systems, with customers in all aircraft categories including wide bodied, regional jet and very light jets aircraft.

Completion of this transaction is also part of MTI Global's re-alignment strategy to reduce debt and debt service costs, to divest itself of non-core assets, to simplify its business operations, and to restore profitability. Completing this transaction in line with its strategy is a significant achievement for MTI Global under the current economic conditions.

MTI remains committed to exiting the silicone business with the sale of its remaining silicone businesses, which include the Milton, Florida plant and 51% ownership in Sterne, of Cavaillon, France.

About MTI Global Inc.

MTI Global Inc. (TSX:MTI) designs, develops and manufactures custom-engineered products using silicone and other cellular materials. The Company serves a variety of specialty markets focused on two main areas: Silicone and MTI Polyfab, comprising, Aerospace and Fabricated Products. The Company designs and fabricates energy management systems from a variety of flexible, cellular materials. MTI Global also produces and distributes specialty silicone elastomer products. MTI Global's primary markets are aerospace and mass transit. Secondary markets include sporting goods, automotive, industrial, institutional, electronics, and the medical market through a 51% interest in MTI Sterne SARL of Cavaillon, France. MTI Global's head office and Canadian manufacturing operations are located in Mississauga, Ontario, with international manufacturing operations located in Pensacola, Florida and a contract manufacturer venture in Ensenada, Mexico. The Company also maintains engineering support centres in Brazil and Toulouse, France. The Company's website is www.mtiglobalinc.com.

Contact Information

  • MTI Global Inc.
    Bill Neill
    President and Chief Executive Officer
    (905) 564-9700
    www.mtiglobalinc.com
    or
    Fleishman-Hillard Canada
    Anne Lachance
    Investor Relations
    (416) 214-0701