Gibraltar Packaging Group to Sell Half Its Niemand Unit

Gibraltar Packaging Group Inc. announced Monday a definitive agreement to sell the machinery, equipment and inventory of the container business of its Niemand Industries Inc. subsidiary based in Marion, AL, to Robinson JDM Ltd. of Toronto, Canada. Niemand's container business accounts for approximately half of Niemand's sales. Terms of the transaction were not announced.

The container business, which consists primarily of the manufacture and sale of cosmetic talc containers, complements Robinson JDM's current product lines. Over the next 60 days, the machinery, equipment and inventory used to produce these containers will be moved to Robinson JDM's plant in Canada. Approximately 95 of Niemand's 184 positions will be eliminated by this move.

On Sept. 23, 1998, Niemand's parent company, Gibraltar Packaging Group Inc., announced its decision to seek buyers for Niemand. Gibraltar is in discussion with other parties, including Niemand management, for the sale of the remaining assets of Niemand. Such parties have expressed their intent to keep the remaining business in Marion, AL. Gibraltar anticipates that the transaction for all or part of the remaining assets of Niemand will be completed next quarter.