Burnham Holdings, Inc. Announces Major Strategic Initiatives

Core Viewpoint - Burnham Holdings, Inc. (BHI) is refocusing its boiler business by divesting a substantial portion of its subsidiaries' legacy asbestos liabilities to Burnham Industries, LLC (BI), which will manage these liabilities independently [1][3][5]. Divestiture - The Legacy Subsidiaries will be capitalized with cash, real estate, and insurance related to legacy liabilities, with BI assuming full responsibility for managing these subsidiaries and their asbestos-related claims [2][3]. - Proceeds from the divestiture of Thermo Products and Norwood Manufacturing were utilized to fund this transaction, neutralizing its impact on existing credit capacity [2]. Strategic Initiatives - This transaction allows BHI to address legacy asbestos liabilities effectively, reducing operational and financial risks while simplifying its corporate structure [3][5]. - BHI's strategic changes include the winddown of Crown Boiler Company operations, divestiture of Thermo Products and Norwood Manufacturing, and the opening of a new Condensing Center of Excellence [4]. Commitment to Long-Term Growth - The divestiture aligns with BHI's commitment to growth in key boiler markets, focusing on core businesses and leveraging strong management teams for improved efficiencies and synergies [4][5]. - The company anticipates a pre-tax loss of approximately $24.0 million in Q4 2025 due to this transaction, but it will eliminate further financial exposure to the legacy liabilities [5]. Company Overview - BHI is a parent company of multiple subsidiaries that manufacture boilers, furnaces, and HVAC products for various applications, listed on the OTC Exchange under the ticker symbol "BURCA" [6].