Hot off the Textron Newsroom ... TFS is sold. Let's hope we get...

Hot off the Textron Newsroom ... TFS is sold. Let's hope we get a plethora of reassuring announcements tomorrow about what this means for TZL. So .. as I expected TZL was not in a position to buy TFS ... I wonder if they have done any deals with Platinum by acquire any part of the business or to strengthen the relationship??

Textron Newsroom:

Textron Reaches Agreement to Sell Fastening Systems Unit to Platinum Equity for $630 Million in Cash
Move Represents Major Advancement in Continued Execution of Textron Portfolio Strategy
Providence, RI – June 1, 2006 –

In a significant move to advance its portfolio strategy, Textron Inc. (NYSE: TXT) today announced that it has reached a definitive agreement to sell its Fastening Systems business to Platinum Equity, a private equity investment firm located in California, for total cash consideration of $630 million plus the assumption of certain liabilities.

Cash proceeds after taxes and transaction costs are expected to be approximately $670 million. The transaction is subject to certain closing adjustments and is expected to close during the third quarter, pending customary regulatory reviews.

This move marks Textron's complete exit from the fastening business and follows the company's strategic evaluation and active marketing process for the unit, announced on September 6th and December 7th, 2005, respectively.

"This transaction is a win-win for all parties," said Lewis B. Campbell, Textron's chairman, president and CEO. "Platinum Equity is gaining a world-class business in Textron Fastening Systems, including the most advanced fastening technologies on the market and one of the best management teams in the industry, while we are extremely pleased to make this important shift in our portfolio."

The sale further advances Textron's portfolio strategy, which has included the divestiture of several non-core manufacturing businesses representing more than $4.4 billion in annual revenues and $1.4 billion in finance receivables from its Textron Financial unit. "In 2001, we set a new course for Textron, making a commitment to redefine our portfolio and invest in those businesses that aligned best with our core strategy for truly meaningful growth," added Campbell. "This is another major step toward our goal to create a value-growing portfolio, which will generate even better profitability and returns."

As previously disclosed, an additional after-tax impairment charge will be recorded in discontinued operations during the second quarter. Based on the estimated impact of transaction terms, the additional charge is now expected to be about $120 million.

About Textron Fastening Systems

Headquartered in Troy, Mich., USA, Textron Fastening Systems Inc. is the leading provider of value-based fastening solutions, engineered fastening systems, state-of-the-art assembly technology, and inventory management and application engineering services. With 9,000 employees worldwide, Textron Fastening Systems supplies value-added products, systems and services to customers in more than 150 countries.

About Platinum Equity

Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specialized in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, software, telecommunications, logistics, manufacturing, and entertainment distribution. Since its founding in 1995 by entrepreneur Tom Gores, Platinum has acquired more than 60 businesses with more than $12 billion in aggregate revenue at the time of acquisition.