EMRISE Corporation Completes Sale of
Advanced Control Components and Pays Down
Debt
Satisfies Credit Agreement Obligations to Principal Lender, Strengthens Balance Sheet, Positions Company
to Focus on Growing Business
September 01, 2010 11:38 AM Eastern Daylight Time
EATONTOWN, N.J.--(EON: Enhanced Online News)--EMRISE CORPORATION (NYSE Arca:ERI), a multi-
national manufacturer of defense, aerospace and industrial electronic devices and communications equipment, today
announced that it has completed the sale of its Advanced Control Components, Inc subsidiary (ACC) to Plainview,
NY-based Aeroflex Incorporated for $20 million in an all cash transaction, subject to a working capital adjustment.
At closing EMRISE received net proceeds, after closing costs, of $17.3 million. EMRISE used $12.7 million of the
net proceeds to pay off all but $3.8 million of approximately $16.5 million in total debt owed to its principal lender
and the former ACC shareholders. The Company also deposited $800,000 in a 12-month escrow account in the
event of any warranty claims or disputes arising from the sale of ACC that may subsequently occur between
EMRISE and Aeroflex. At the end of the escrow period any unused funds in the account will be returned to
EMRISE.
EMRISE Chairman and Chief Executive Officer Carmine T. Oliva said closing these transactions is the final step in
the Company’s strategy to divest non-core, non-performing and other businesses, significantly reduce its debt,
strengthen its balance sheet and return to focusing on growing the business and enhancing stockholder value.
To pay off the $10.6 million debt to its principal lender and otherwise satisfy its credit agreement obligations to the
lender, EMRISE paid $9.6 million in cash and signed a $1 million, two-year interest bearing note for the balance. To
satisfy the ACC deferred purchase obligations to the former ACC shareholders, EMRISE paid $3.1 million in cash,
signed a $2.8 million, three-year interest bearing note, and Charles Brand, th