National Presto Industries, Inc. (NYSE:NPK) Files An 8-K Entry into a Material Definitive Agreement

National Presto Industries, Inc. (NYSE:NPK) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01Entry into a Material Definitive Agreement

Item 2.01 Completion of Acquisition or Disposition of Assets

On January 3, 2017, National Presto Industries, Inc. (the
Company) and its wholly-owned subsidiary, Presto Absorbent
Products, Inc. (Seller), entered into and simultaneously
consummated the transactions contemplated an asset purchase
agreement (the asset purchase agreement) with Drylock
Technologies, Ltd. (Buyer). A copy of the asset purchase
agreement is filed herewith as Exhibit 2.1.

to the asset purchase agreement, on the January 3, 2017 closing
date Seller sold to Buyer certain assets used exclusively in
Sellers business of designing, manufacturing and marketing
private-label and branded adult incontinence products (the
Business). Buyer also assumed certain agreements and liabilities
of the Business as of the closing date. Certain assets were
excluded from the asset sale transaction, including Sellers cash
and cash equivalents, excluded contracts, and any assets not
exclusively used in the Business.

On January 3, 2017, the Buyer paid the Seller approximately $67
million in respect of the asset sale transaction, subject to
adjustment following the closing date for the difference between
estimated and actual net working capital amounts.

Excluded from the assets sold at the January 3, 2017 closing were
certain damaged assets exclusively used in the Business. The
asset purchase agreement provides that, when repaired or replaced
and otherwise meeting defined performance standards, these assets
will be sold by Seller to Buyer on a delayed basis for $4.0
million at a subsequent closing.

As contemplated by the asset purchase agreement, on January 3,
2017, the Buyer offered employment to all of the Sellers
employees, and the Company, as landlord, entered into a lease
agreement with Buyer, as tenant for the lease of a portion of the
Companys Eau Claire facility. Buyer will use the leased premises
for manufacturing private-label and branded adult incontinence
products and related activities.

The foregoing summary of the asset purchase agreement does not
purport to be complete and is subject to and qualified in its
entirety by reference to the asset purchase agreement, which is
filed herewith as Exhibit 2.1 and is incorporated herein by
reference.On January 3, 2017, to the terms of the Asset Purchase
Agreement, by and among the registrant and Drylock Technologies,
Ltd. (Drylock), the registrant sold substantially all assets of
its wholly-owned absorbents product subsidiary, Presto Absorbent
Products, Inc. to Drylock.The registrant issued a press release
regarding the transaction, which is filed as Exhibit 99.2 to this
Form 8-K. Such Exhibit shall not be deemed filed for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended
(the Exchange Act), or incorporated by reference in any filing
under the

Securities Act of 1933, as amended, or the Exchange Act, except
as shall be expressly set forth by specific reference in such a
filing.

Item 7.01Regulation FD Disclosure

On January 3, 2017, the Company issued a press release announcing
the consummation of the asset sale transaction. A copy of the
press release is furnished as Exhibit 99.1 to this Current Report
on Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(a) Financial Statements of Business Acquired

Not applicable

(b) Pro Forma Financial Information

Furnished herewith as Exhibit 99.2 is the following pro forma
financial information:

(c) Shell Company Transactions

Not applicable

(d) Exhibits

Forward looking statements in this Form 8-K are made to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. There are certain important factors that could cause
results to differ materially from those anticipated by some of
the statements made herein. Investors are cautioned that all
forward looking statements involve risks and uncertainty. In
addition to the factors discussed above, among the other factors
that could cause actual results to differ materially are the
following: government defense spending and defense requirements;
termination for the convenience of the government; interest
rates; continuity of relationships with and purchases by the
United States Government and other major customers; unexpected
problems or events experienced by subcontractors, team members,
or their respective suppliers or subcontractors; product mix;
competitive pressure on pricing; increases in
material,freight/shipping, labor or other production costs that
cannot be recouped through pricing; and such other factors as may
be described from time to time in the Registrants SEC filings.

to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

About National Presto Industries, Inc. (NYSE:NPK)
National Presto Industries, Inc. (National Presto) manufactures pressure cookers and canners, ammunition and private label adult incontinence products. The Company operates in three segments: Housewares/Small Appliance, which designs, markets and distributes housewares and small electrical appliances, including pressure cookers and canners, kitchen electrics, and comfort appliances; Defense, which manufactures approximately 40 millimeters ammunition, precision mechanical and electro-mechanical assemblies, medium caliber cartridge cases; performs Load, Assemble and Pack (LAP) operations on ordnance-related products; produces and sells a range of less lethal products and support accessories, and provides training for the use of less lethal products, and manufactures detonators, booster pellets, release cartridges, lead azide, and other military energetic devices and materials, and Absorbent Products, which manufactures and sells private label and branded adult incontinence products. National Presto Industries, Inc. (NYSE:NPK) Recent Trading Information
National Presto Industries, Inc. (NYSE:NPK) closed its last trading session down -0.50 at 104.35 with 16,164 shares trading hands.