EMRISE Corporation Enters into Binding
Agreement to Sell Advanced Control Components
to Aeroflex Incorporated for $20 Million
Net Proceeds Will Pay Down Debt, Help Strengthen Balance Sheet and Position Company To Focus on
Growing Its Business
June 08, 2010 09:33 AM Eastern Daylight Time
EATONTOWN, N.J.--(EON: Enhanced Online News)--EMRISE CORPORATION (NYSE Arca:ERI)
(“EMRISE” or the “Company”), a multi-national manufacturer of defense, aerospace and industrial electronic
devices and communications equipment, today announced that is has entered into a binding stock purchase
agreement with Plainview, NY-based Aeroflex Incorporated pursuant to which EMRISE will sell all of the issued
and outstanding shares of common stock of its Advanced Control Components, Inc. subsidiary (“ACC”) to
Aeroflex for $20 million in an all cash transaction, subject to a potential working capital adjustment. The sale of
ACC is subject to the approval of EMRISE’s stockholders. The transaction is expected to close in July 2010.
Approximately $14.6 million of proceeds from the transaction will be used to pay down all of the Company’s
revolver with its principal lender, a significant portion of its term debt with the same lender and a majority of the
Company’s obligations to the previous owners of ACC. The Company will retain approximately $3.9 million in long
term debt payable to both its current lender and the previous owners of ACC, all of which has a maturity of at least
two years or longer.
Further details of the transaction will be disclosed in a Form 8-K which the Company intends to file with the
Securities and Exchange Commission later this week.
EMRISE President and Chief Executive Officer Carmine T. Oliva said that closing the transaction to sell ACC will
mark the final step in the implementation of the Company’s previously announced strategy to divest certain assets
and businesses to pay its principal lender, strengthen its balance sheet and position the Company to focus on growing
its business.
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