Andrew Corp To Sell Its Satellite Communications Business | |
Andrew Corp To Sell Its Satellite Communications Business To Resilience Capital Partners - Update [ANDW]
11/6/2007 11:59:25 AM Communication equipment maker Andrew Corp. (ANDW) said Tuesday that it has agreed to sell its underperforming Satellite Communications business to Cleveland, Ohio-based private equity firm Resilience Capital Partners.
Under the terms of the deal, Andrew will receive up to $39 million in total potential cash consideration, in addition to an ownership stake of 17% to 20% in the new satellite communications company, called ASC Signal Corporation, that Resilience will set up with the acquired Andrew assets.
The deal is expected to close before the year-end.
Andrew will receive $9 million in cash at closing and $5 million in seller's notes that will mature three years after closing. Andrew may also receive up to an additional $25 million in cash after three years based upon the achievement of certain financial targets by the new company.
Andrew said it expects to record a charge against earnings of about $15 million to $20 million related to the sale, depending upon the ownership stake received and the book value of the Satellite Communications assets at the date of closing.
Andrew's Satellite Communications unit, which employs about 520 people in nine countries, had sales of about $104 million in fiscal 2007, comprising nearly 5% of Andrew's overall revenues.
Andrew shares are currently trading at $14.66, up a penny. |