|FOR IMMEDIATE RELEASE
January 20, 2010
ARMSTRONG, Iowa, January 20, 2010 – Art’s Way Manufacturing, Inc. (NASDAQ: ARTW), a leading manufacturer and distributor of niche agricultural machinery, equipment and services, is pleased to announce the Company completed the previously announced acquisition of the manure spreader product line of Roda Manufacturing, Inc., Hull, Iowa. www.rodamfg.com. At closing, Art’s Way Manufacturing paid approximately $1,189,000.
The product line includes The H Series – a non-commercial, high quality, low maintenance pull-type manure spreader that comes in 400, 600 and 800 bushels. The V Series – a commercial spreader with removable vertical beaters, adjustable apron speed and a reversible apron. The HV Series – combines the best of both the H and V Series. These units are rugged, reliable and available in 20′, 22′ and 24′ box length with either horizontal or vertical beater options. They also feature a durable one-piece frame design and a triple apron.
J. Ward McConnell, Jr., Chairman of the Board, said, “Our entire team is extremely pleased to complete this product line acquisition because we believe it will be earnings accretive immediately, hold a compelling valuation, is an outstanding fit with our industry leading forage equipment and is a key element in our ‘roll-up strategy’. This vertical acquisition allows us to expand and round out our product line, improve our niche manufacturing leadership position, build our asset base for revenue growth and increase shareholder value. I know our dealers will be very excited to be able to offer this outstanding line of manure spreaders to their customers.”
About Art’s Way Manufacturing, Inc.
Art’s Way manufactures and distributes farm machinery niche products including animal feed processing equipment, sugar beet defoliators and harvesters, land maintenance equipment, crop shredding equipment, plows, hay and forage equipment and top and bottom drive augers. After market service parts are also an important part of the Company’s business. We have two wholly owned subsidiaries. Art’s Way Vessels Inc. manufactures pressurized tanks and vessels; Art’s Way Scientific Inc. manufactures modular animal confinement buildings and modular laboratories.
For More Information, Contact: Jim Drewitz, Investor Relations
Or visit the Company’s website at www.artsway-mfg.com
This news release includes “forward-looking statements” within the meaning of the federal securities laws. In this release, forward-looking statements generally relate to: (i) the Company’s ability to meet its production schedule; (ii) the Company’s intent to focus on driving revenue, controlling costs and strengthening its balance sheet; (iii) the expected impact of worldwide economic conditions; and (iv) intent to monitor market opportunities; and (vi) the Company’s growth potential in its industry. Statements of anticipated future results are based on current expectations and are subject to a number of risks and uncertainties, including but not limited to, quarterly fluctuations in results, customer demand for the Company’s products and acceptance of its product lines, current domestic and international economic conditions, the Company’s ability to manage growth, incorrect assumptions by management with respect to production cycles and market conditions, unexpected production delays and other risks detailed from time to time in the Company’s Securities and Exchange Commission filings. Actual results may differ markedly from management’s expectations. The Company cautions readers not to place undue reliance upon any such forward-looking statements.