GenCorp Releases Additional Details Regarding Sale of Electronics Unit

Apr 20, 2001, 01:00 ET from Gencorp

    SACRAMENTO, Calif., April 20 /PRNewswire Interactive News Release/ --
 Earlier today, GenCorp (NYSE:   GY) announced that its Aerojet-General
 subsidiary had signed a definitive agreement to sell Aerojet's Electronics and
 Information Systems (EIS) business for $315 million in cash.  In response to
 requests for additional details regarding the transaction, Terry Hall, Senior
 Vice President and Chief Financial officer of GenCorp, stated "Upon close of
 the transaction, we expect to see significant improvements in GenCorp's
 balance sheet, with shareholder's equity growing to approximately $380 million
 and debt decreasing to approximately $240 million.  This will facilitate
 growth of Aerojet's remaining businesses in Sacramento."
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010108/SFM125LOGO )
     Hall said that in addition to the normal antitrust clearances, the sale
 would require a Revenue Ruling from the IRS and a Prospective Purchaser
 Agreement between the buyer and the United States.  "Because Aerojet is
 retaining all pre-closing environmental liability for the business, we must
 also obtain advance agreements from the Department of Defense covering
 Aerojet's Global Settlement Agreement, under which the government recognizes
 eight-eight percent of Aerojet's environmental costs as allowable," Hall
 added.
     GenCorp is a technology-based manufacturer with leading positions in the
 aerospace and defense, pharmaceutical fine chemicals and automotive
 industries.
     This release contains forward-looking statements as defined by the Private
 Securities Litigation Reform Act of 1995.  All statements in this release and
 in subsequent discussions with the Company's management, other than historical
 information, are forward-looking statements.  A variety of factors, which are
 listed in the forward-looking statements section of Management's Discussion
 and Analysis in the Company's 2000 annual report and in the annual report on
 Form 10-K filed with the Securities and Exchange Commission could cause actual
 results or outcomes to differ materially from those expected by the Company
 and expressed in the Company's forward-looking statements.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X71543865
 
 

SOURCE Gencorp
    SACRAMENTO, Calif., April 20 /PRNewswire Interactive News Release/ --
 Earlier today, GenCorp (NYSE:   GY) announced that its Aerojet-General
 subsidiary had signed a definitive agreement to sell Aerojet's Electronics and
 Information Systems (EIS) business for $315 million in cash.  In response to
 requests for additional details regarding the transaction, Terry Hall, Senior
 Vice President and Chief Financial officer of GenCorp, stated "Upon close of
 the transaction, we expect to see significant improvements in GenCorp's
 balance sheet, with shareholder's equity growing to approximately $380 million
 and debt decreasing to approximately $240 million.  This will facilitate
 growth of Aerojet's remaining businesses in Sacramento."
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010108/SFM125LOGO )
     Hall said that in addition to the normal antitrust clearances, the sale
 would require a Revenue Ruling from the IRS and a Prospective Purchaser
 Agreement between the buyer and the United States.  "Because Aerojet is
 retaining all pre-closing environmental liability for the business, we must
 also obtain advance agreements from the Department of Defense covering
 Aerojet's Global Settlement Agreement, under which the government recognizes
 eight-eight percent of Aerojet's environmental costs as allowable," Hall
 added.
     GenCorp is a technology-based manufacturer with leading positions in the
 aerospace and defense, pharmaceutical fine chemicals and automotive
 industries.
     This release contains forward-looking statements as defined by the Private
 Securities Litigation Reform Act of 1995.  All statements in this release and
 in subsequent discussions with the Company's management, other than historical
 information, are forward-looking statements.  A variety of factors, which are
 listed in the forward-looking statements section of Management's Discussion
 and Analysis in the Company's 2000 annual report and in the annual report on
 Form 10-K filed with the Securities and Exchange Commission could cause actual
 results or outcomes to differ materially from those expected by the Company
 and expressed in the Company's forward-looking statements.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X71543865
 
 SOURCE  Gencorp

RELATED LINKS

http://www.aerojet.com


http://www.gencorp.com