TOROTEL TO ACQUIRE OPT INDUSTRIES, INC.
KANSAS CITY, Mo., July 21 /PRNewswire/ -- Torotel, Inc. (AMEX: TTL), a leading manufacturer of magnetic components, today announced it has signed a letter of intent to acquire a controlling interest in OPT Industries, Inc. of Phillipsburg, N.J. While the terms were not disclosed, most of the acquisition cost will involve Torotel taking over OPT's existing bank debt. The agreement is subject to final credit approval from Torotel's prospective lender. Acquisition Brings Higher Commercial Sales, New Technologies, New Markets "This acquisition meets Torotel's objective of increasing its commercial business," explained president and chief executive officer Alfred F. Marsh. "About 55 percent of OPT's revenues in fiscal 1992 (ended Oct. 31) came from commercial and industrial customers. Because the two companies were rarely in direct competition, and OPT has some products and technologies that Torotel does not, the acquisition will give us access to new customers and markets." OPT is a privately held manufacturer of magnetic components and high-power switching power supplies. The company had $12.8 million in sales for fiscal 1992. Torotel had net sales of $8.5 million and net earnings of $284,000, or 10 cents per share, for fiscal 1993. Torotel, Inc. specializes in the design and high-volume manufacture of a broad line of precision magnetic components used in commercial and military electronics. These components, which include transformers, inductors, reactors, chokes and toroidal coils, are sold to original equipment manufacturers for use in telecommunications systems, computers, digital control devices, and avionics equipment. The company has a base of more than 400 customers. Headquartered in a suburb of Kansas City, Torotel's shares trade on the American Stock Exchange under the symbol TTL. For further information on Torotel by fax, dial 800-PRO-INFO, ext. 155. -0- 7/21/93 /CONTACT: Al Marsh, president of Torotel, 816-761-6314; or Lynne Franklin, 312-266-7800, or Regina Ryan, 212-661-8030, both of the Financial Relations Board, Inc., for Torotel/ (TTL)
CO: Torotel, Inc.; OPT Industries, Inc. ST: Missouri, New Jersey IN: SU: TNM
CK -- NY068 -- 3966 07/21/93 13:04 EDT
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|Date:||Jul 21, 1993|
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