Diebold Selling 2 Factories to Supplier

Before you go, we thought you'd like these...
Before you go close icon

On Monday, ATM manufacturer Diebold announced a plan to sell its manufacturing operations in Lynchburg, Va., and Lexington, N.C., to one of its own suppliers, Porter's Group. Financial terms were not disclosed.

Based in Bessemer City, N.C., Porter's has supplied fabricated sheet metal to Diebold for years. The factories it is buying today include one (Lynchburg) that fabricates sheet metal components for Diebold's ATMs, and a second (Lexington) that makes safe deposit boxes and other secure containers for bank branches. Diebold is retaining its Greensboro, N.C., factory that does final assembly on ATMs.

The move doesn't appear to be aimed at raising cash -- Diebold has a pretty solid balance sheet, boasting nearly as much cash as debt. Rather, Diebold says it's simply aiming to consolidate operations and boost efficiency in its supply chain.


Investors, however, reacted negatively to the news, bidding down Diebold shares 1.7% to close at $27.61 in Monday trading.

The article Diebold Selling 2 Factories to Supplier originally appeared on Fool.com.

Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners