NEW YORK, Jan. 5, 2012 /PRNewswire/ -- Steel Partners Holdings L.P. (Pink Sheets: SPNHU) ("SPH") announced today that its wholly owned subsidiary, SP Corporate Services LLC ("SP Corporate"), entered into a Management Services Agreement (the "Management Services Agreement") with Handy & Harman Ltd. (NASDAQ(CM): HNH); ("HNH"), effective January 1, 2012. Under the Management Services Agreement, SP Corporate will provide HNH with corporate and executive services including, without limitation, legal, tax, accounting, treasury, consulting, auditing, administration, compliance, environmental health and safety, human resources, marketing, investor relations and other similar services rendered for HNH and its subsidiaries. In addition, SP Corporate will provide HNH with the continued service of Glen Kassan, as HNH's Chief Executive Officer, Jim McCabe, as HNH's Chief Financial Officer, and certain other employees and corporate services.
In connection with the Management Services Agreement, HNH transferred to SP Corporate approximately 37 employees, as well as certain other assets that had previously been used or held for use by HNH and its subsidiaries in providing the subject services which SP Corporate will now be providing to HNH.
The Management Services Agreement was entered into in connection with the formation of SPH Services, Inc., a new subsidiary of SPH that was created to consolidate the executive and corporate functions of SPH and certain of its affiliates, including SP Corporate and Steel Partners LLC, to provide such services to other companies, including, without limitation, HNH. SPH Services, Inc. will operate through its wholly owned subsidiary, SP Corporate. In addition to its Management Services Agreement with HNH, SP Corporate has management services agreements with other companies, including BNS Holding, Inc., CoSine Communications, Inc., DGT Holdings Corp., NOVT Corporation, Ore Holdings, Inc., Steel Excel Inc. and WebBank.
By consolidating corporate overhead and back office functions, SPH believes it will achieve cost savings over time for its affiliated companies while delivering more efficient and effective services. As a result of the synergies associated with SP Corporate's specialization and capabilities across a broad range of corporate and executive functions that are provided to SPH and other companies, SP Corporate believes that it will be able to create high value business partnerships by delivering higher quality services and more efficient professional transaction processing which will result in significant cost savings that can be achieved through standardization, clear processes and procedures, the elimination of non-value adding activities and economies of scale.
The Management Services Agreement and related transactions were approved by the audit committee of SPH's general partner.
About Steel Partners Holdings L.P.
Steel Partners Holdings L.P. is a global diversified holding company that owns and operates businesses and has significant interests in leading companies in various industries, including diversified industrial products, energy, defense, banking, insurance, food products and services, oilfield services, sports, training, education, and the entertainment and lifestyle industries.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, general economic conditions. Although Steel Partners Holdings believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate, and therefore, there cannot be assurance that any forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in any forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by Steel Partners Holdings or any other person that the objectives and plans of Steel Partners Holdings will be achieved.
SOURCE Steel Partners Holdings L.P.
Steel Partners Holdings GP Inc., James F. McCabe, Jr., Chief Financial Officer, +1-212-520-2300