Windstream Corporation (NYSE: WIN) has entered into an agreement to sell
the non-affiliate operating assets of the company’s product distribution
subsidiary, Windstream Supply LLC, to Walker and Associates, Inc., based
in Welcome, N.C.
"This transaction provides a better strategic path for our supply
business and allows Windstream to focus on our core communications
business,” said Brent Whittington, chief operating officer for
Windstream.
Virginia Walker, CEO of Walker, stated, "For nearly 40 years, Walker has
been an innovator in customer-oriented supply and services to network
operators. Our storied market strength is a great platform for
leveraging this added scale and customer reach."
The transaction primarily includes product inventory and customer
accounts. The sale is expected to close later this month. Terms were not
disclosed. The transaction is expected to have virtually no effect on
the company’s operating income before depreciation and amortization
(OIBDA) performance in 2009. Windstream Supply was expected to generate
roughly $75 million in sales from external customers for 2009.
About Windstream
Windstream Corporation is an S&P 500 company that provides phone,
high-speed Internet and high-definition digital TV services to customers
in 16 states. The company also offers a wide range of IP-based voice and
data services and advanced phone systems and equipment to businesses and
government agencies. The company has approximately 3 million access
lines and about $3.1 billion in annual revenues. Windstream is ranked
4th in the 2009 BusinessWeek 50 ranking of the best performing U.S.
companies. For more information about Windstream, visit www.windstream.com.
Windstream claims the protection of the safe-harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of
1995. Forward-looking statements, including statements on the company’s
expected OIBDA performance in 2009, are subject to uncertainties that
could cause actual future events and results to differ materially from
those expressed in the forward-looking statements. These forward-looking
statements are based on estimates, projections, beliefs and assumptions
that Windstream believes are reasonable but are not guarantees of future
events and results. Actual future events and results of Windstream may
differ materially from those expressed in these forward-looking
statements as a result of a number of important factors. Factors that
could cause actual results to differ materially from those contemplated
above include, among others: risks associated with the disposition of
the non-affiliate business to Walker and Associates, Inc.; the ability
of Windstream to realize the anticipated cost reductions and other
benefits from the disposition; further adverse changes in economic
conditions in the markets served by Windstream; material changes in the
communications industry generally that could adversely affect vendor
relationships with equipment and network suppliers and customer
relationships with wholesale customers; and those additional factors
under the caption "Risk Factors” in Windstream’s Form 10-K for the year
ended Dec. 31, 2008. In addition to these factors, actual future
performance, outcomes and results may differ materially because of more
general factors including, among others, general industry and market
conditions and growth rates, economic conditions, and governmental and
public policy changes. Windstream undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. The foregoing review of factors
that could cause Windstream's actual results to differ materially from
those contemplated in the forward-looking statements should be
considered in connection with information regarding risks and
uncertainties that may affect Windstream's future results included in
Windstream’s filings with the Securities and Exchange Commission at www.sec.gov.
About Walker
Walker and Associates is a woman-owned, national distributor of
telecommunications network products. Walker’s customers are chiefly
broadband providers including wireline, wireless, cable TV, government
and enterprise network operators. Walker’s extensive range of products
from over 200 suppliers facilitates the delivery of high-speed Internet,
video, data and voice services to residential, business, and mobile
users.
Walker performs important logistics, supply chain management and
technical support services for its customers, as well as general product
promotion for its manufacturer base. Walker is TL9000 / ISO 9000 quality
certified. Headquartered in Welcome, N.C., near Winston-Salem, the
company is celebrating 39 years of success in 2009.
