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Angelica Completes Sale of Long Beach Operations

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FOR IMMEDIATE RELEASE
ST. LOUIS, MISSOURI
DECEMBER 20, 2005

Angelica Completes Sale of Long Beach Operations

ST. LOUIS, Missouri (December 20, 2005) — Angelica Corporation (NYSE:AGL), today announced that it has sold substantially all of the assets including real estate of its Long Beach, CA operations to American Textile Maintenance Company d/b/a Republic Master Chefs. The sale, which was completed on December 19, 2005, includes assets associated with servicing only non-healthcare related customers. The divested operations represent a small portion of the Los Angeles market served by Angelica. Terms of the transaction were not disclosed.  It is expected that the buyer will be offering employment to a substantial portion of the employees at the facility.

Commenting on the transaction, Steve O’Hara, Angelica’s CEO said, “Long Beach was Angelica’s last plant which was 100 percent non-healthcare and, as such, did not fit with our long term strategy of being the leader in healthcare services. We’re delighted that we could find a home for this plant’s customers and most of its employees with a quality hospitality provider like Republic Master Chefs. We will work with Republic to insure a smooth transition for customers and employees.”

Angelica Corporation, traded on the New York Stock Exchange under the symbol AGL, is a leading provider of textile rental and linen management services to the U.S. healthcare market. More information about Angelica is available on its website, www.angelica.com

Forward-Looking Statements

Any forward-looking statements made in this document reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These potential risks and uncertainties include, but are not limited to, competitive and general economic conditions, the ability to retain current customers and to add new customers in competitive market environments, competitive pricing in the marketplace, delays in the shipment of orders, availability of labor at appropriate rates, availability and cost of energy and water supplies, the cost of workers' compensation and healthcare benefits, the ability to attract and retain key personnel, the ability of the Company to recover its seller note and avoid future lease obligations as part of its sale of Life Uniform, the ability of the Company to accomplish its strategy of redirecting its resources to its healthcare linen management business in a timely and financially advantageous manner, unusual or unexpected cash needs for operations or capital transactions, the effectiveness the Company’s initiatives to reduce key operating costs as a percentage of revenues, the ability to obtain financing in required amounts and at appropriate rates and terms, the ability to identify, negotiate, fund, consummate and integrate acquisitions, and other factors which may be identified in the Company's filings with the Securities and Exchange Commission.

 

For additional information contact:


JIM SHAFFER
CHIEF FINANCIAL OFFICER or
COLLEEN HEGARTY
DIRECTOR OF INVESTOR RELATIONS
ANGELICA CORPORATION
(314) 854-3800

JOHN MILLS
INTEGRATED CORPORATE RELATIONS, INC.
(310) 395-2215

 
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