Brown & Sharpe Manufacturing Co. Deal - Lehman Brothers Collection
Brown & Sharpe Manufacturing Co.
|Company Deal||Brown & Sharpe Manufacturing Company: 163,674 shares common stock|
|Transaction Type||Common Stock|
|Deal Description||Brown & Sharpe Manufacturing Company used the net proceeds from this transaction, together with other funds of the company, to retire the 4% and 5% serial notes of the company's real estate subsidiary, the Pleasant Valley Land Company. This debt was incurred to finance in part the construction of the company's new main office and manufacturing facilities in North Kingstown, Rhode Island. Prior to the construction of such new facilities, the company's executive offices and manufacturing facilities were located in downtown Providence in a group of interconnecting single and multi-storied buildings whose construction dated from as early as the company's incorporation.
Because of production inefficiencies inherent in the design and age of these facilities, the company in 1963 decided to build a modern plant and headquarters in North Kingstown. The company believed that the new plant would enable it to realize significant savings in maintenance and production costs.|
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