Nacco halts planned Hamilton Beach spinoff due to market conditions

By Lisa Kerner

Charlotte, N.C., Aug. 27 - The volatile and uncertain capital markets are to blame for Nacco Industries, Inc.'s change of heart regarding the previously announced tax-free spinoff of its Hamilton Beach/Proctor-Silex business to Nacco stockholders, according to a company news release.

Nacco's board said completing the spinoff at this time "is not conducive to establishing Hamilton Beach as an independent public company and would not be in the best interests of Nacco, its stockholders or Hamilton Beach."

Hamilton Beach will remain a wholly owned subsidiary of Nacco and continue with normal operations.

In April, Nacco's board approved the planed spinoff, which was expected to be completed by the end of June. Nacco stockholders were to receive shares in Hamilton Beach while also retaining their shares of Nacco common stock.

Nacco originally announced a definitive agreement on July 24, 2006 to spin off its Hamilton Beach/Proctor-Silex business as part of its merger with Florida-based small household appliance distributor Applica Inc.

Nacco is a Mayfield Heights, Ohio-based operating holding company with three principal businesses: lift trucks, housewares and mining.

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