Kimball To Spin Off Electronics Segment As Independent Publicly Traded Company

(RTTNews) - Kimball International Inc. (KBALB) announced its Board has unanimously approved a plan to enhance shareholder value through a tax free spin-off of its electronic manufacturing services segment. The separation will result in two standalone publicly-traded companies: Kimball International Inc. , and Kimball Electronics Inc.

The furniture company Kimball International will continue under the Kimball brand name and KBALB NASDAQ trading ticker symbol. The Board expects the spin-off, which is intended to be tax-free to shareholders, to be completed in approximately 8-12 months.

The Board of Kimball believes the value of the spin-off to future shareholders of both companies would be enhanced by a single class of stock and accordingly, has decided that the spin-off will be conditioned upon the agreed conversion on a date certain by Class A shareholders of a sufficient number of Class A shares to trigger the 15% threshold, thus giving the company a single-class of stock at the spin-off of Kimball Electronics. The company expects to obtain the agreement of a sufficient number of Class A shareholders to satisfy this condition.

Upon completion of the spin-off, Thyen will retire from his current role as the company's President and Chief Executive Officer, as well as resign his position as a Director. Douglas Habig will also retire from the company and resign his position as a Director. Donald Charron, currently President of the Kimball Electronics Group, will serve as Chairman of the Board and Chief Executive Officer of the new company Kimball Electronics, and Robert Schneider, currently Chief Financial Officer, will serve as Chairman of the Board and Chief Executive Officer of Kimball International.