Aerovox Sells Power Factor Correction Business.NEW BEDFORD, Mass.--(BUSINESS WIRE)--Aug. 3, 1998--Aerovox Incorporated (Nasdaq.NM:ARVX) announced today that it has sold its Power Factor Correction Power factor correction (PFC) is a technique of counteracting the undesirable effects of electric loads that create a power factor that is less than 1. Power factor correction may be applied either by an electrical power transmission utility to improve the stability and efficiency Systems business to a unit of General Electric Company (NYSE NYSE See: New York Stock Exchange :GE). The PFC PFC abbr. private first class Noun 1. PFC - a powerful greenhouse gas emitted during the production of aluminum perfluorocarbon unit manufactured and sold equipment used to enhance the efficient use of power by large industrial plants. In fiscal year 1997, the business accounted for approximately $4 million of Aerovox's net sales. "The PFC business, which markets low-volume capital goods to industrial users through separate sales channels, didn't fit well within Aerovox, which is a high-volume supplier of capacitors to OEM manufacturers", said Aerovox President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Robert D. Elliott. "And since the business did not fit strategically or operationally, we did not want to create space for it in the new plant we will be building in New Bedford", added Elliott. Elliott noted, "It goes without saying that GE will be a competent, world-class supplier to our Power Factor customers." Neither company disclosed the terms of the sale, which took place at the end of July, although Aerovox does expect to record a gain on the sale in its third quarter. Aerovox Incorporated is a leading manufacturer of film, paper and aluminum electrolytic e·lec·tro·lyt·ic adj. 1. Of or relating to electrolysis. 2. Produced by electrolysis. 3. Of or relating to electrolytes. e·lec capacitors. The Company sells its products worldwide, principally to original equipment manufacturers as components in electrical and electronic equipment. In addition to its plant in New Bedford, Massachusetts New Bedford is a city in Bristol County, Massachusetts, located about 51 miles (82 kilometers) south of Boston, 28 miles (45 kilometers) southeast of Providence, Rhode Island, and about 12 miles (19 kilometers) east of Fall River. , Aerovox has operations in Huntsville, Alabama; Juarez, Mexico; and Weymouth, England.
CONTACT: Aerovox
Lauren Nawrocki
Communications Specialist
(508) 910 - 3673
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