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Tower Tech Holdings Inc. Completes Acquisition of Brad Foote Gear Works, Inc.
Monday October 22, 6:55 pm ET
-J. Cameron Drecoll Appointed CEO-


MANITOWOC, Wis.--(BUSINESS WIRE)--Tower Tech Holdings Inc. (TWRT) has closed the previously announced acquisition of Brad Foote Gear Works, Inc., an Illinois-based manufacturer of gearing systems for the wind turbine, oil and gas and energy-related industries.
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Upon closing, J. Cameron Drecoll, the CEO of Brad Foote Gear Works, assumed chief executive responsibilities for the combined company and was appointed to Tower Tech’s Board of Directors. Mr. Drecoll has been the majority shareholder and CEO of Brad Foote Gear Works since 1996. Mr. Drecoll said, “We are excited about the closing of the transaction and the opportunities the combination brings to our customers, employees and surrounding communities.”

Tower Tech purchased all of the outstanding stock of Brad Foote Gear Works for approximately 16 million shares of Tower Tech common stock and $64 million cash, plus an amount equal to the tax cost of the Brad Foote Gear Works shareholders making an election under Section 338(h)(10) of the Internal Revenue Code. The cash portion of the consideration was funded through both debt and equity financing, which was structured to provide additional liquidity to facilitate the future growth plans and working capital needs of Tower Tech and its subsidiaries. Tontine Partners, L.P. and its affiliates purchased an aggregate of 12,500,000 shares of Tower Tech common stock in a private placement at a purchase price of $4.00 per share and provided $25 million of additional interim debt financing in the form of senior subordinated convertible notes. Tower Tech also assumed approximately $21 million of senior debt from Brad Foote Gear Works.

About Tower Tech Holdings Inc.

Tower Tech Holdings Inc. (OTC:TWRT - News) is dedicated to the production of components for energy and infrastructure-related industries. Tower Tech is primarily focused on the manufacture of components for the wind industry, including tower support structures through its Tower Tech Systems subsidiary and gearing systems through its Brad Foote Gear Works subsidiary. Tower Tech is headquartered in Manitowoc, Wisconsin and has additional locations in Cicero, Illinois and Neville Island, Pennsylvania.