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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): October 22, 1998
AEARO CORPORATION
(Exact name of Registrant as specified in charter)
DELAWARE 0-26942 13-3840450
(State or other jurisdiction (Commission file number) (IRS employer
of incorporation) identification no.)
5456 WEST 79TH STREET, INDIANAPOLIS, INDIANA 46268
(Address of principal executive offices) (Zip Code)
(317) 692-6983
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
Settlement of Gargoyles Litigation. On October 22, 1998, Aearo
Corporation issued the following press release:
AEARO CORPORATION ENTERS INTO SETTLEMENT AGREEMENT
WITH GARGOYLES, INC.
INDIANAPOLIS (October 22, 1998) -- Aearo Corporation announced today that it has
entered into a settlement agreement with Gargoyles, Inc. The settlement resolves
a lawsuit that Gargoyles filed in 1996, alleging that a line of safety eyewear
Aearo sells under the name "Fectoids" infringes Gargoyles' patents.
Under the terms of the settlement, in which Aearo expressly denies any liability
in the lawsuit, Aearo will continue to manufacture its Fectoids line of eyewear
for sale into safety eyewear markets. Aearo also will have the right to sell
into such markets other lines of safety eyewear that Gargoyles contended
infringe its patents. Aearo agreed to pay Gargoyles $1.2 million in exchange for
a release of all claims relating to Gargoyles' patents and for uncontested
rights to continue manufacturing and selling its Fectoids and other lines of
eyewear.
"We are pleased to have amicably resolved this matter in this way," says Aearo
President and Chief Executive Officer Michael McLain. "The settlement provides
the assurance of uninterrupted sales of these products to our customers and
eliminates the substantial litigation costs of trial and appeal. Now the company
can renew its focus on promoting Fectoids and successor products as a key
component of its line of quality eyewear and other personal protection
equipment."
Headquartered in Indianapolis, Aearo Corporation had sales of $293 million for
the 12 months ended June 30, 1998. The company designs, manufactures and sells
personal protection equipment, including hearing protection, prescription and
non-prescription safety eyewear and respirators. The company's products,
marketed under the E-A-R, AOSafety, Peltor and Eastern brand names, are sold
principally to industrial safety distributors and are used by industry,
government, the military and health providers. Its AOSafety and Eastern products
can be found in retail outlets such as home centers, hardware, drug and sporting
goods stores. In addition, its E-A-R Specialty Composites division manufactures
energy-absorbing materials for the transportation, OEM and healthcare markets.
Aearo operates 10 manufacturing plants throughout the world, employing more than
1,800 workers.
Aearo Corporation is jointly owned by affiliates of Vestar Capital Partners, a
major private equity investment firm specializing in management buyouts, Cabot
Corporation (NYSE: CBT) and the company's senior management.
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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 thereunto duly authorized.
Date: October 28, 1998 AEARO CORPORATION
By: /S/ Bryan J. Carey
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Bryan J. Carey
Vice President and Chief Financial Officer
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