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EXHIBIT 99.2
FOR IMMEDIATE RELEASE Contacts: Jill Burchill
Chief Financial Officer
June 26, 2000 507/663-8294
Sheldahl, Inc. JILL.BURCHILL@SHELDAHL.COM
1150 Sheldahl Road
Northfield, MN 55057 Jennifer Weichert
Weichert Financial Relations, Inc.
612/839-9871
weichertfr@aol.com
Troy McCombs for IFT
Coltrin & Associates, Inc.
212/221-1616
SHELDAHL ANNOUNCES
EXCLUSIVE NEGOTIATIONS WITH
INTERNATIONAL FLEX TECHNOLOGIES INC.
Northfield, MN, June 26, 2000 - Sheldahl, Inc. (NasdaqNM: SHEL) announced today
that it has begun exclusive negotiations with International Flex Technologies
Inc. (IFT), a privately-held company headquartered in Endicott, New York. The
two companies are currently discussing a proposal under which Sheldahl would
acquire IFT in exchange for shares of Sheldahl's common stock. In addition,
Morgenthaler Partners, the majority owner of IFT and other potential investors
have proposed to infuse approximately $40 million in new capital into Sheldahl
in exchange for shares of a new series of Sheldahl's convertible preferred stock
at a conversion price of $4.62 per share. As a result of the acquisition and new
investment, Morgenthaler Partners, the IFT shareholders and the other new
investors would hold securities representing beneficial ownership of
approximately 43% of Sheldahl.
No assurances are given as to whether an agreement will be signed or a
transaction consummated. However, Sheldahl and IFT have entered into an
agreement pursuant to which Sheldahl and IFT will deal exclusively with each
other until August 7, 2000. The proposal is subject to customary conditions
including, among other things, negotiation of definitive agreements, completion
of satisfactory due diligence, absence of material adverse change, and
regulatory and other approvals, including approval by Sheldahl's shareholders.
Edward L. Lundstrom, President and Chief Executive Officer, commented, "We
believe the pending acquisition of IFT, along with the infusion of new capital,
if completed, will benefit Sheldahl's shareholders. The combined technical
strengths, production capacity and flexible circuitry foundation will create a
powerful force in the marketplace. We are pleased and excited with the news and
look forward to restructuring our balance sheet and gaining the financial
stability that will drive Sheldahl to future successes."
"We believe the combination of IFT and Sheldahl will create a number of new
business opportunities, enhance shareholder value and benefit the communities in
which we operate, "said Donald R. Friedman, IFT President and Chief Executive
Officer. "IFT will benefit from the near-term increase in manufacturing capacity
available at Sheldahl's Longmont, CO facility
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while continuing to grow local employment in Endicott, NY. Sheldahl will benefit
from IFT's expertise in high density packaging and fine-line flex products and
the infusion of new capital."
International Flex Technologies Inc. is a privately held company based in
Endicott, New York. IFT acquired IBM Corporation's(TM) fine-line flexible
circuit business in February, 1999.
Morgenthaler is a private equity investment firm with offices in Cleveland, Ohio
and Menlo Park, California, with approximately $1 billion under management.
Sheldahl is a leading producer of high-density substrates, high-quality flexible
printed circuitry, and flexible laminates primarily for sale to the automotive
electronics and data communications markets. The Company, which is headquartered
in Northfield, Minnesota, has operations in Northfield; Longmont, Colorado;
South Dakota; Toronto, Ontario, Canada; and Chihuahua, Chih., Mexico. Its sales
offices are located in Detroit, Michigan; Hong Kong, China; Singapore; and
Mainz, Germany. As of January 31, 2000, Sheldahl employed approximately 820
people. Sheldahl's common stock trades on the Nasdaq National Market tier of the
Nasdaq Stock Market under the symbol: SHEL. In its fiscal year ended August 27,
1999, Sheldahl reported revenues of $122.1 million. Sheldahl news and
information can be found on the World Wide Web at http://www.sheldahl.com
The discussion above contains statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements by their nature
involve substantial risks and uncertainties as described by Sheldahl's periodic
filings. Actual results may differ materially depending on a variety of factors,
including but not limited to the following: the achievement of Sheldahl's
projected operating results, the ability of Sheldahl to successfully obtain
waivers from its lenders for any defaults on its debt covenants, the achievement
of efficient volume production and related sales revenue results at Longmont,
the ability of Sheldahl to identify and successfully pursue other business
opportunities, and Sheldahl not entering into an agreement with respect to a
transaction or any such transaction not being consummated. Additional
information with respect to the risks and uncertainties faced by Sheldahl may be
found in, and the prior discussion is qualified in its entirety by, the Risk
Factors contained in the Company's filings with the Securities and Exchange
Commission, including Sheldahl's Annual Report, Form 10-K for the fiscal year
ended August 27, 1999, Forms 10-Q for the quarters ended November 26, 1999;
February 25, 2000, and other SEC filings. Sheldahl does not undertake any
obligation to update any such factors or to publicly announce developments or
events relating to the matters described herein.