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Industry News: Norwood Thanks Customers For Support After Sale Announcement

Issue: 2009may

After Indianapolis, Indiana-based supplier Norwood Promotional Products (UPIC: NORWOOD) announced last week it entered into an agreement to sell to Aurora Resurgence, a private equity firm, the company has received numerous well-wishes and words of support from customers.

The sale is intended to help Norwood strengthen its balance sheet and help develop Norwood into a stronger, more flexible supplier, says Norwood CEO Paul Lage, MAD. The sale will be completed through a proceeding in a Chapter 11 reorganization case, which Norwood filed last week with a targeted closing by the end of June.

“We will continue to purchase inventory and take and ship orders under normal schedules, so it is business as usual. Customers will receive the same high quality products and prompt service to which they are accustomed,” says Lage.

“Our distributors have been very supportive,” he adds. “Our largest distributors have already communicated the facts of this sale to their teams and that Norwood will continue to do business as usual and will remain a strong partner moving forward.”

The transaction is the culmination of the refinancing and restructuring efforts that the company has been working on since 2006. The purchase price includes cash and the assumption of certain liabilities, according to a news release issued by Norwood. Norwood has secured an extension of its existing revolving credit line to avoid any disruption to the business.

The current management team, including Lage, will continue to lead the company once the sale closes. “We are pleased to have Aurora as our partner for the long term,” adds Lage. “Their vision, values and strategies are aligned with Norwood’s direction. Their tremendous experience and knowledge of the industry will immediately benefit our customers and enhance our opportunities going forward.”

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