SOURCE: Nashua

November 30, 2006 16:10 ET

Nashua Corporation Completes Sale of Merrimack, New Hampshire Real Estate

NASHUA, NH -- (MARKET WIRE) -- November 30, 2006 -- Nashua Corporation (NASDAQ: NSHA), a manufacturer of labels, and thermal and specialty papers, today announced that it has completed its previously announced sale of real estate located in Merrimack, New Hampshire to Equity Industrial Partners Corp. The sale price of the real estate was $18.5 million. The Company expects to report a net gain of approximately $10 million in the fourth quarter of 2006 on the transaction. As part of the transaction, Nashua is leasing back approximately 156,000 square feet of space in the Merrimack facility for its paper coating operations.

Thomas Brooker, President and Chief Executive Officer of Nashua, stated, "The sale of the Merrimack, New Hampshire real estate caps an eventful year in which Nashua liquidated non-strategic businesses and real estate assets generating a significant amount of cash. Our toner and coated carbonless businesses were liquidated with the sale of certain assets and intellectual property. Real estate in Nashua and Merrimack was sold with the company only leasing back approximately 20% of the space sold. Primarily as a result of the sale of the New Hampshire real estate, we expect to reduce debt by approximately $17 million by year end and fund our share repurchase program."

About Nashua

Nashua Corporation manufactures and markets a wide variety of specialty imaging products and services to industrial and commercial customers to meet various print application needs. The Company's products include thermal coated papers, pressure-sensitive labels, bond, point of sale, ATM and wide format papers, entertainment tickets, and ribbons for use in imaging devices. Additional information about Nashua Corporation can be found at

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "will," "expects" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, the Company's ability to consummate the transaction, the Company's future capital needs and resources, fluctuations in customer demand, intensity of competition from other vendors, timing and acceptance of new product introductions, delays or difficulties in programs designed to increase sales and profitability, general economic and industry conditions, the resolution of certain litigation matters, and other risks set forth in the Company's filings with the Securities and Exchange Commission, and the information set forth herein should be read in light of such risks. In addition, any forward-looking statements represent the Company's estimates only as of the date of this press release and should not be relied upon as representing the Company's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, even if its estimates change.

Contact Information

  • Contact:
    Tom Brooker/John Patenaude
    Nashua Corporation

    Rich Coyle
    Citigate Sard Verbinnen