Chase Reports Earnings, Says Buyout is Off

Chase Industries Inc., Montpelier, Ohio, has announced that discussions with a potential acquirer have ended. The copper and brass company previously reported that it had received a proposal from the corporate acquirer to purchase all of Chase's outstandingshares of common stock for a per share cash price of approximately $13.00.

Court Square Capital Limited (an affiliate of Citicorp Venture Capital and Chase Acquisition Corp.), whichowns 47% of Chase’s outstanding common stock, refused to support the proposal,squelching the deal.

The company has also announced its first quarter 2001 results, reporting earnings of $1.7 million,down from $5.7 million in the first quarter last year. (Part of the company’s profit went toward negotiating with the potential acquirer.).

Chase CEO Martin V. Alonzo says the company’s financial results “were impacted by the economic slow down, which began in the third quarter of last year.” The CEO is optimistic, though, that “the two percentage point reduction in interest rates by the Federal Reserve since the beginning of the year should reinvigorate the economy by year-end and result in positive company quarterly comparisons in 2002.”

The Chase Brass & Copper Co. subsidiary of Chase is a copper-bearing scrap consumer that mills free-machining brass rod for plumbing fixtures, heating and air conditioningcomponents, industrial valves, automotive parts, and numerous hardware components.