Linen management solutions provider Angelica Corporation declared its quarterly dividend of 11 cents, payable on October 10, 2005, to shareholders of record at October 3, 2005.
The Board also announced that Steve O'Hara would succeed Don Hubble as Chairman of the Board, effective January 29, 2006. O'Hara will retain the Chief Executive Officer title as well. Effective at the same time, Chuck Mueller, retired Chairman and CEO of Ameren Corporation, will become Lead Director for Angelica Corporation. Mueller has been a director since 1996 and will continue as Chairman of the Corporate Governance and Nominating Committee. Hubble will remain an active member of the Board of Directors.
Finally, the Board responded to shareholder requests to consider a stock buyback by noting that it would continue to consider such a program in the future but that current debt levels, combined with highly volatile energy prices impacting our business, makes this move imprudent at this time. Since debt is currently above target levels, and volatile energy markets increase the uncertainty of any forward projections, the Board believes the best use of cash at this time is to reduce debt to target levels before a stock repurchase program or any further sizable acquisitions.
Missouri based Angelica Corporation traded on the New York Stock Exchange under the symbol AGL, is a leading provider of textile rental and linen management services to the US healthcare market. Through a West Coast acquistion made in 1968, Angelica became a supplier of textile rental services to the health care industry.
In the 1970s, major laundry acquisitions were made in the Northeast and, again, on the West Coast. A large number of Florida facilities were added in 1990. With other acquisitions and strong internal growth, Angelica now has 26 plants across the country and has achieved and maintained a leading share of this market.
marketing@alchempro.com
