Andrew Corp To Sell Its Satellite Communications Business

Orthoclipse

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.

wod

so does this mean the end of andrew satellite dishes ?

i hope not

CROSSBONES

Probably just another name change!

Channel master/Andrews/ASC Signal Corporation dish`s

EgyptDUDE

bad news really
hope product quality stays the same
funny thing that numbers doesnt match ! think they r giving it up cheap comparing to their profit ($104/year)

snap

Andrew has been hopelessly badly run for the couple of years I have been buying from them.
Products supplied to me this month were manufactured in 2003. I just hope the new company's bean counters don't axe the dish manufacture side, as Andrew antennas are still the best on the market.

wod

better stock up and buy another andrews dish just incase

Channel Hopper

There was a lot of *ahem* surplus stock at the time of the last acquirement. It wouldn't surprise me is in two years time new deliveries still has the CM marking on it.

Andrews still has the edge on 1.2 -1.8 and 2.4m in performance, if you can put up with the indifferent delivery schedules.

__________________
There is a very fine line between "hobby" and "mental illness"

william

I will send off for a spare feed horn just in case.

wod

and a dish just incase i would

CROSSBONES

The polar mounts have been discontinued for a while now

timbo86

Have a look at vanjak.com for reasonable price andrews polar mounts, dishes and feedhorns. This is who I use here in Belfast.

CROSSBONES

Thanks Timbo for the link, but do they have stock?

timbo86

Yes, apart from the feedhorn which I am awaiting. Wish I had got my orignal CM from them because it took 5 weeks when I ordered it from a crap company in England who shall remain nameless!

wod

timbo how do you see the prices on that website ?

timbo86

Wod you have to apply for an account. Shouldnt be a problem if your notes have the Queens head on them. I find their prices remarkably cheap. Andrews feedhorn is £30 for example!

wod

is it a trade website or can anyone buy from them ?

as i would like a polar mount for andrews dish as a spare for my 1224 motor

timbo86

£54.28 + vat for the CM polar mount. Phone them up 2moro and tell them Tim from Belfast put you in touch.