Magnetek Announces Board and Management Changes Following Divestiture of Company's Power Electronics Groups
MENOMONEE FALLS, Wis. - October 30, 2006 - Magnetek, Inc. (NYSE: MAG) today announced Board and executive management changes following the October 23rd divestiture of the Company’s Power Electronics Group. As previously reported, proceeds from the divestiture are being used for, among enabling the Company to emerge as a profitable enterprise with positive cash flow and outstanding growth prospects.
Stepping down as Chairman of the Board is Andrew G. Galef, who remains as a Magnetek director. Succeeding Mr. Galef as Chairman is Mitchell I. Quain, who has served as a director since 2000. Mr. Quain, 54, was formerly Vice Chairman of Investment Banking at ABN AMRO. Prior to the acquisition of its banking business by ABN AMRO, Mr. Quain was Executive Vice President and a Principal of ING Barings LLC. Before joining ING Barings Furman Selz, he served in research and investment banking capabilities with Schröder Wertheim. He holds an MBA, with distinction, from the Harvard Business School. He is Chairman of the Board of Overseers of The University of Pennsylvania’s School of Engineering & Applied Sciences and also serves on the University’s Board of Trustees.
“A special vote of thanks and admiration goes to Andy Galef, who founded Magnetek in 1984 and has led the Company ably to many achievements as well as through difficult challenges over the years,” said Mr. Quain. “We also want to thank Tom Boren for his service not only as a fellow director since 1997, but most recently as Magnetek’s CEO since May of 2005. Tom was the catalyst that led to the current restructuring of the Company, which we believe will benefit all of our shareholders in the years ahead.”
Magnetek also announced that, due to the divestiture of its facilities in California, the Company’s corporate headquarters has moved from the Los Angeles area to its manufacturing center located at N49 W13650 Campbell Drive in Menomonee Falls, WI, a suburb of Milwaukee.
Magnetek manufactures digital power and motion control systems used in material-handling, people-moving, communications and energy delivery, and is the world’s leading builder of grid-tied power inverters for large commercial fuel cells with more than 160 installations and half a billion operating hours in the field over the past decade. On September 29, 2006, the Company reported revenues of $83.1 million for its 2006 fiscal year, ended on July 2, 2006 (a).
(a) Magnetek’s fiscal quarters end on the Sundays nearest September 30, December 31, March 31 and June 30.
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.