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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934
Date of Report (date of earliest event reported) July 9, 1996
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MAXCO, Inc.
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(exact name of registrant as specified in its charter)
MICHIGAN 0-2762 38-1792842
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1118 CENTENNIAL WAY, LANSING, MICHIGAN 48917
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (517) 321-3130
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MAXCO, INC.
FORM 8-K
Item 2. Acquisition or Disposition of Assets
On July 9, 1996, Maxco completed an agreement to sell its 67 percent interest
in FinishMaster, Inc. Maxco sold its 4,045,000 shares of FinishMaster to Lacy
Distribution, Inc., an affiliate of LDI, Ltd. of Indianapolis, IN and entered
into an agreement not to compete for a total consideration of $62.6 million.
More than 90 percent of the total consideration is in cash, including an
initial payment on the non-compete agreement, with the balance payable over the
five year term of the non-compete agreement. The price was negotiated by the
parties based on their evaluation of the intrinsic value of the operation. W.
Y. Campbell & Company, a Detroit based investment banking firm, acted as
financial advisor to Maxco in this transaction.
As a result of this transaction, Maxco will report a gain in its second quarter
ending September 30, 1996, of approximately $23 million net of tax or $5.00 per
share. Maxco has not formulated plans for the use of the net proceeds from
this transaction.
The disposition was reflected in Maxco's financial statements filed with Form
10-K for the year ended March 31, 1996.
Item 7. Financial Statements and Exhibits
Exhibit
Number
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10.7 Stock purchase agreement is hereby incorporated by reference from the
registrants Form 10-K for the year ended March 31, 1996.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MAXCO, INC.
(Registrant)
DATE: July 18, 1996 By: /S/VINCENT SHUNSKY
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Vincent Shunsky,
Vice President-Finance and Treasurer
(Principal Financial and Accounting Officer)