Zapata Corporation Agrees to Sell its 77% Interest in Safety Components to Wilbur Ross for $51.2 Million
ROCHESTER, N.Y.--(BUSINESS WIRE)--Sept. 26, 2005--Zapata Corporation (NYSE:ZAP) Chairman and CEO, Avie Glazer, announced today that Zapata had agreed to sell all of its 4,162,394 shares of Safety Components International, Inc. (OTCBB: SAFY), to private equity investor Wilbur L. Ross, Jr. for $51.2 million. This represents approximately 77.3% of Safety Components' total outstanding common stock. Safety Components, the leading independent manufacturer of air bag fabrics and cushions, had sales of $230.4 million and income of $7.4 million in the twelve months ended June 30, 2005. The company's value-added fabrics are mainly used in automobile safety air bags and in a variety of applications such as fire service apparel, ballistics material for luggage, filtration and military tents. Safety Components is headquartered in Greenville, South Carolina and has plants located in North America, Europe, China and South Africa.
Mr. Ross said, "We have confidence in the long-term outlook for the business even though industry conditions are challenging at present. Management has great technical expertise in manufacturing its niche textiles globally, and we hope to help them acquire complementary product lines."
Mr. Glazer added, "Safety Components is an excellent company and we have enjoyed our relationship with it. We look forward to continuing to enhance value at Zapata. Zapata plans to continue to evaluate strategic opportunities for the use of our capital resources."
The transaction, which is subject to a number of customary closing conditions, including approval by the shareholders of Zapata, is expected to close in the fourth quarter of 2005. Zapata's largest stockholder, Malcolm Glazer, who beneficially owns approximately 52% of Zapata's common stock, has committed to vote in favor of this transaction.
About Zapata:
Zapata is a holding company which currently has two operating companies, Safety Components International, Inc. and Omega Protein Corporation (NYSE:OME). The Company has a 77% ownership interest in Safety Components and a 58% ownership interest in Omega Protein. In addition, Zapata owns 98% of Zap.Com Corporation (OTCBB: ZPCM), which is a public shell company.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. These forward looking statements include, but are not limited to, statements regarding the likelihood and timing of the closing of the transaction. Investors are cautioned that all forward-looking statements involve risks and uncertainty that could cause actual results to differ materially from those in the forward-looking statements. These risks include, without limitation, the possibility that the transaction will not close or that the closing may be delayed. More information about potential factors that could affect Zapata's business and financial results is included under the heading "Significant Factors That Could Affect Future Performance and Forward-Looking Statements" contained in Zapata's Quarterly Report on Form 10-Q for the period ended June 30, 2005 filed with the Securities and Exchange Commission (the "SEC"), which is available at the SEC's website at http://www.sec.gov, all of which are incorporated herein by reference. All forward-looking statements included in this press release are based on information available at the time of the release. Zapata does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release.
CONTACT: Zapata Corporation
Leonard DiSalvo, 585-242-8703
http://www.zapatacorp.com
SOURCE: Zapata Corporation