Ballard Spahr Represents EMRISE Corporation
in $20 Million Sale of Advanced Control
September 09, 2010 08:48 AM Eastern Daylight Time
PHILADELPHIA--(EON: Enhanced Online News)--Business and finance attorneys at Ballard Spahr represented
EMRISE Corporation (NYSE Arca: ERI) — a multinational manufacturer of defense, aerospace, and industrial
electronic devices and communications equipment — in the sale of its Advanced Control Components (ACC)
subsidiary to Aeroflex Incorporated for $20 million, subject to a working capital adjustment.
The company used proceeds from the all-cash transaction to significantly pay down credit agreement obligations to
its senior lender and the former ACC shareholders. Ballard Spahr attorneys assisted in renegotiating the balances
owed to each party and in establishing a new revolver credit facility for the company’s UK operations. The
transaction also involved the repurchase of warrants previously sold by EMRISE and a realignment of the
company’s finance staff.
The Ballard Spahr team negotiated the terms of the sale, which included a stock-purchase agreement, and assisted in
the preparation and filing of a proxy statement and other filings with the Securities and Exchange Commission.
Ballard Spahr attorneys also provided tax counsel, assisted with labor and employment issues, advised on the
transactional finance aspects of the deal, and handled the closing.
Stockholders approved the sale during the EMRISE Annual Stockholders’ Meeting on Monday, August 30, 2010.
The transaction was part of the company’s strategy to divest noncore, nonperforming, and other businesses; reduce
debt; and focus on future growth.
Jennifer Miller and Jerry Guarcini led the Ballard Spahr team, which included Gregory L. Seltzer, Pamela A.
Meredith, Steven M. Miller, Sandra Wintner, Jocelyn K. O’Brien, Tobey M. Daluz, Justin P. Klein, Wendi L.
Kotzen, Wayne R. Strasbaugh, Christopher A. Jones, Naomi Young, Glenn A. Harris, and D. Renee Applegate.
About EMRISE Corporati