Peerless Manufacturing sells Dallas facility for $4.4M

Peerless Manufacturing Company on February 2 announced that the company has agreed to sell its Dallas facility to Dallas Area Rapid Transit "DART" for $4,424,000 cash. The sale is planned to close on May 1.

The Dallas facility consists of approximately 12 acres of land, manufacturing buildings, research laboratory and corporate offices. The company's primary manufacturing facilities are located in Abilene, Texas and Denton, Texas. The company will relocate its administrative offices to leased space in Dallas. The Dallas facility was reported as "Assets Held for Sale" in the company's 10-K for the fiscal year ended June 30, 2006 and 10-Q for the quarter ended September 30, 2006.

Peter J. Burlage, CEO stated, "Peerless has been on notice that DART would acquire our Dallas facility under the laws of eminent domain. We are pleased to have negotiated this sales agreement that better serves Peerless. With the May 1, 2007 closing date, we have been making preparations to relocate our administrative offices to leased office space in Dallas that is designed to better accommodate our employees and provide a more functional layout. Our research laboratory, an integral part of our leading technology position, will be enhanced and relocated to leased industrial space in Dallas. Finally, our Denton manufacturing facility will be expanded to accommodate the displaced Dallas facility that manufactures about 5 percent of our annual revenues. The management team is working hard to minimize the disruptions to our business as a result of this relocation process."

Peerless Manufacturing designs, engineers, manufactures and sells highly specialized products used for the abatement of air pollution and products for the separation and filtration of contaminants from gases and liquids.