Farrel aims to go private as investment group offers to buy shares

Ansonia, Connecticut - Farrel Corp. has agreed with an un-named private investor group to buy all of the issued and outstanding shares of Farrel common stock. It is anticipated that members of Farrel's current management team will own approximately 30 percent of the Company after the deal is completed.

The deal offers an immediate cash price of $2.75 per share, with a further payment of up to $0,25 due three years after the completion of the deal. Although few shares are traded in the company, the price was well below $1 until April of 2006, when the stock price jumped to around $1.40. The new offer is roughly double the average share price over the last six months.

There were approximately 6 million shares outstanding as of July 2006, putting the value of the deal at around $17 million.

In a statement, Farrel said, "Pursuant to the merger, a subsidiary of the private investor group will merge with and into Farrel, with Farrel continuing as the surviving corporation. After the merger Farrel will be a privately-held company and its stock will no longer be publicly traded."

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Statement from Farrel on US financial site, Pink Sheets