Tennant Company Acquires Key Tennant Dealer in China
Tennant Company Acquires Key Tennant Dealer in China
Accelerates development of Tennant Sales and Service in Shanghai market
MINNEAPOLIS, Minn., Aug. 15, 2008—Tennant Company (NYSE: TNC), a world leader in designing, manufacturing and marketing solutions that help create a cleaner, safer world, today announced that it has entered into an asset purchase and sale agreement with Shanghai Shen Tan Mechanical and Electrical Equipment Co. Ltd., a 12 year key distributor of Tennant Products in Shanghai, China.
Shanghai Shen Tan, a dedicated Tennant Products distributor, holds strong market share with both direct sales and service presence in the greater Shanghai area including important relationships with major industrial customers and a strong position in key industrial vertical markets. Shanghai Shen Tan revenues were approximately $1.6M in 2007 based on industrial machine sales and a strong service offering.
“We have a high regard for our relationship with Shanghai Shen Tan and look ahead to growing together in the Shanghai marketplace,” said Mauro Compagnoni, Managing Director of Asia Pacific for Tennant.
The asset purchase of Shen Tan’s customer base plus the acquisition of Shen Tan’s current General Manager and key customer service/service engineering staff will accelerate Tennant’s strategy to grow its direct sales and service business in the key economic area of Shanghai.
Company Profile
Minneapolis-based Tennant Company (NYSE: TNC) is a world leader in designing, manufacturing and marketing solutions that help create a cleaner, safer world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; and specialty surface coatings for protecting, repairing and upgrading concrete floors. Tennant's global field service network is the most extensive in the industry. Tennant has manufacturing operations in Minneapolis, Minn.; Holland, Mich.; Uden, The Netherlands; the United Kingdom; São Paulo, Brazil; and Shanghai, China; and sells products directly in 15 countries and through distributors in more than 80 countries. For more information, visit www.tennantco.com.
Forward-Looking Statements
Certain statements contained in this document as well as other written and oral statements made by us from time to time are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements do not relate to strictly historical or current facts and provide current expectations or forecasts of future events. Any such expectations or forecasts of future events are subject to a variety of factors. These include factors that affect all businesses operating in a global market as well as matters specific to us and the markets we serve. Particular risks and uncertainties presently facing us include: geopolitical and economic uncertainty throughout the world; inflationary pressures; fluctuations in the cost or availability of raw materials and purchased components; the ability to achieve anticipated global sourcing cost reductions; successful integration of acquisitions, including the ability to carry acquired goodwill at current values; our ability to achieve growth plans; our ability to achieve projections of future financial and operating results; the ability to achieve operational efficiencies, including synergistic and other benefits of acquisitions; our ability to benefit from production reallocation plans; the success and timing of new technologies and products; our ability to acquire, retain and protect proprietary intellectual property rights; the potential for increased competition in our business; our ability to attract and retain key personnel; the relative strength of the U.S. dollar, which affects the cost of our materials and products purchased and sold internationally; changes in laws, including changes in accounting standards and taxation changes; unforeseen product quality problems; and the effects of litigation, including threatened or pending litigation.
We caution that forward-looking statements must be considered carefully and that actual results may differ in material ways due to risks and uncertainties both known and unknown. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. For additional information about factors that could materially affect Tennant's results, please see our other Securities and Exchange Commission filings, including disclosures under "Risk Factors."
We do not undertake to update any forward-looking statement, and investors are advised to consult any further disclosures by us on this matter in our filings with the Securities and Exchange Commission and in other written statements we make from time to time. It is not possible to anticipate or foresee all risk factors, and investors should not consider any list of such factors to be an exhaustive or complete list of all risks or uncertainties.
INVESTOR CONTACT:
Tom Paulson
Vice President and Chief Financial Officer
763-540-1204
MEDIA CONTACT:
Kathryn Lovik
Director, Communications
763-540-1212
