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Exhibit 99.1
Maxco, Inc. Announces It Has Signed a Definitive Asset
Purchase and Sale Agreement to Sell Substantially All the Assets of
its Wholly Owned Subsidiary, Atmosphere Annealing,
Inc.
GRAND LEDGE, Mich., Dec. 13
/PRNewswire-FirstCall/ -- Maxco, Inc. (Nasdaq: MAXC) announced that
it has signed a definitive asset purchase and sale agreement to
sell substantially all the assets of its wholly owned subsidiary,
Atmosphere Annealing, Inc. ("AAI") as well as the assets of AAI's
100% owned subsidiary, BCGW, Inc. ("BCGW") to Quanex Technologies,
Inc., a subsidiary of Quanex Corporation (NYSE: NX). Terms were not
disclosed.
The transaction, expected to close on or about
February 1, 2007, is subject to approval by Maxco, Inc. ("Maxco")
shareholders, obtaining consents from regulatory authorities, and
other customary closing conditions. Maxco will be obligated to pay
at closing certain outstanding liabilities secured by the assets of
AAI and BCGW. In addition, Maxco will be required to place into
escrow a portion of the sale price for up to four years.
Maxco currently operates in the heat-treating
business segment through AAI. AAI, a Michigan corporation, provides
metal heat treating, phosphate coating and bar shearing and sawing
services to the cold forming, stamping, forging and casting
industries. AAI's four plants are located in Lansing, Michigan;
Canton, Ohio; and North Vernon, Indiana.
Quanex Corporation is an industry-leading
manufacturer of engineered materials and components for the
vehicular products and building products markets.
"AAI has been very successful sinc
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