Mine Safety Appliances to become MSA Safety Inc.
Global safety equipment manufacturer Mine Safety Appliances Company announced that its board approved the implementation of a new holding company structure.
Among the most visible changes resulting from this action will be a formal change in the legal name of the company from Mine Safety Appliances Company to MSA Safety Incorporated. The company expects to formally complete the restructuring later this month.
As a newly formed Pennsylvania corporation, MSA Safety Incorporated will become the NYSE-listed SEC-reporting holding company for a group of reorganized subsidiaries.
Under the new structure, MSA Safety Incorporated will serve as the parent holding company for a new operating company, as well as a group of sub-holding and operating companies covering various aspects of MSA's businesses.
William M. Lambert, MSA president and CEO, explained that MSA Safety Incorporated will be established through a series of merger transactions involving Mine Safety Appliances Company. MSA Safety Incorporated will be a Pennsylvania corporation. In connection with the merger, the outstanding preferred and common stock of Mine Safety Appliances Company will be converted into the equivalent number of shares of preferred stock and common stock, respectively, of MSA Safety Incorporated. As a result, shareholders will not need to take any steps to convert their shares.
"The realignment steps we are announcing today provide MSA with several benefits as we chart the future course for the company," Lambert said. "For instance, the new structure will enable better operational efficiency and provide greater flexibility to implement elements of our corporate strategy as that strategy evolves over time. In addition, the holding company model provides broader options to enhance financial transparency of our numerous business units."
Lambert noted that while the realignment will involve moving some assets and operations to different subsidiaries of the new holding company, this action will have no effect on MSA's customers or the day-to-day roles and responsibilities of MSA's global employees. "This realignment does not involve any layoffs or the closing of any facilities," he said. "We are taking this action because we have excellent growth potential around the world and this realignment will enable us to better realize that potential while maintaining the strong equity of the MSA brand that has been built over the last century."
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