Magnetek, Inc. Relocating Headquarters to Menomonee Falls
MENOMONEE FALLS, Wis. - November 1, 2006 - Magnetek, Inc. (NYSE: MAG) today announced it is moving its headquarters to the Company’s largest manufacturing center, located in Menomonee Falls, WI. Revenue growth and the restructuring of the Company are expected to bring an additional 60 positions to the area, according to Peter McCormick, Magnetek Executive Vice President and President of the Company’s Power Control Systems division.
The move of Magnetek’s headquarters to Menomonee Falls comes after the divestiture of the Company’ s Power Electronics Group, based in Valdarno, Italy, with manufacturing facilities in Shenzen, China and Chatsworth, California, which also housed the Company’s corporate headquarters. Proceeds from the sales of the Power Electronics Group, effective October 23, 2006, will be used to eliminate debt, make a substantial pension fund payment and fund future growth initiatives. The Company intends to emerge as a profitable enterprise with positive cash flow and outstanding growth potential.
Magnetek manufactures digital power and motion control systems used in material handling, people moving, mining and alternative energy. In addition to Menomonee Falls, Magnetek operates manufacturing plants in Pittsburgh, PA; Dallas, TX and Mississauga, Ontario, Canada. “The move of Magnetek’s headquarters to Menomonee Falls is very positive for Southeastern Wisconsin, resulting in added employment opportunities in the area,” states McCormick. He adds that the Company is looking to fill engineering opportunities in the area,” states McCormick. He adds that the Company is looking to fill engineering, operations, production and management positions in Menomonee Falls.
McCormick notes that Magnetek is the leader in many of the industries it serves. “We’re America’s largest supplier of digital motion-control systems for industrial cranes and hoists, and the world’s leading independent builder of digital motion control systems for elevators,” he states. “Magnetek is also a leading manufacturer of power conditions for commercial fuel cells and multi-megawatt power inverters for large wind generators, as well as a provider of new-generation digital drive systems for coal mining.”
The Company is in negotiations to lease an additional 75,000 square feet of space near its existing facility in Menomonee Falls, which will house production and office space. Magnetek currently employs approximately 300 people in the Milwaukee area.
Magnetek, Inc., is listed on the New York Stock Exchange (NYSE: MAG). The Company reported revenue of $83.1 million for its 2006 fiscal year, ended on July 2, 2006.
Director, Marketing Communications
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s anticipated financial results for future periods, including the fiscal year ending July 2, 2006. These forward-looking statements are based on the Company’s expectations and are subject to risks and uncertainties that cannot be predicted or quantified and are beyond the Company’s control. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying these forward-looking statements. These risks and uncertainties include effects of economic, market and operating conditions on the Company and its financial results. Other factors that could cause actual results to differ materially from expectations are described in the Company’s reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934.