Hrg Group Inc fka HRG

[Enterprising Investor]

HRG Group, Inc. Announces Sale of its Oil and Gas Business (7/05/16)

NEW YORK, July 5, 2016 /PRNewswire/ -- HRG Group, Inc. ("HRG" or the "Company"; NYSE: HRG) today announced that its wholly-owned subsidiary, HGI Energy Holdings, LLC ("HGI Energy"), has entered into an agreement to sell 100% of its equity interest in its oil and gas subsidiary, Compass Production Partners ("Compass"), to CPP WI Holding Company, LLC, an affiliate of Mountain Capital Management, a newly formed Houston-based energy private equity firm. Pursuant to the terms of the transaction agreement, Compass will be sold for $145 million in cash (the "Purchase Price"), which will be reduced at closing by the balance of Compass' credit facility outstanding at closing (currently estimated to be $125 million). The Purchase Price is subject to other customary closing adjustments, including adjustments for title and environmental defects. HRG is a party to the agreement for the purpose of satisfying HGI Energy's post-closing obligations to the buyer.

The transaction is expected to close in August of 2016 subject to satisfaction of applicable closing conditions. The agreement may terminate at any time following September 15, 2016 if closing has not occurred by such date.

In addition, at the closing of the transaction, HGI Energy will be recapitalized with an equity contribution of $110 million in assets or cash to satisfy its future obligations. For additional information, interested parties may review HRG's Current Report on Form 8-K filed with the SEC on July 5, 2016.

About HRG Group, Inc.

HRG Group, Inc. is a diversified holding company focused on owning businesses that the Company believes can, in the longer term, generate sustainable free cash flow or attractive returns on investment. The Company's principal operations are conducted through businesses that: offer branded consumer products (such as consumer batteries, residential locksets, residential builders' hardware, faucets, shaving and grooming products, personal care products, small household appliances, specialty pet supplies, lawn, garden and home pest control products, personal insect repellents, and auto care products); offer life insurance and annuity products; provide asset-backed loans; and own energy assets. HRG is headquartered in New York and traded on the New York Stock Exchange under the symbol HRG. For more information on HRG, visit: www.HRGgroup.com.

http://www.prnewswire.com/news-releases/hrg-group-inc-announces-sale-of-its-oil-and-gas-business-300294001.html