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Axsys Technologies Announces Sale of Distributed Products Business
Axsys Technologies, Inc. (Nasdaq:AXYS), a global leader in the design and development of high-performance surveillance cameras, imaging systems and related motion control technologies, today announced the sale of its distributed products business. In addition, Axsys' management announced the implementation of a new organizational and reporting segment structure, and the hiring of a new business executive.
Sale of Distributed Products Business
The company has completed the sale of its Distributed Products business, known as AST Bearings, to an affiliate of Tonka Bay Equity Partners, LLC for $15.5 million in cash, subject to a working capital adjustment, with an estimated after-tax gain of $2.0 million. Proceeds from the sale will be used to pay down all of Axsys' existing debt, leaving the company with an expected cash balance in excess of $10.0 million at year end.
The sale of this non-strategic business will allow the company to focus its financial resources and devote greater management attention to its core businesses. AST Bearings' operating results for the fourth quarter through November plus the gain on the sale of the business will be recorded as a discontinued operation in the fourth quarter of 2007.
"The successful sale of AST Bearings marks the culmination of Axsys' transformation into a focused organization concentrating on the delivery of high-performance optical and motion control technologies to the security, defense, and space markets," said Stephen W. Bershad, Chairman and CEO of Axsys Technologies. "In addition, with a debt-free balance sheet we are well positioned to invest in the growth of our company."
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| B15 bearing | 34.925 | 62.713 | 19.05 |
| B14 bearing | 33.338 | 59.54 | 19.05 |