TRANSTECHNOLOGY ANNOUNCES DEFINITIVE AGREEMENT
TRANSTECHNOLOGY ANNOUNCES DEFINITIVE AGREEMENT LOS ANGELES, March 6 /PRNewswire/ -- TransTechnology Corp.
(NYSE: TT) announced today that it entered into a definitive agreement to sell its Lundy Financial Systems business to Recognition Equipment Inc. for $37.8 million, of which $35.3 million will be paid in cash and $2.5 million as a three-year note. The transaction is expected to be consummated in March 1992. However, several conditions of closing remain to be met, including the clearance under the Hart Scott Rodino Act and completion of financing for the transaction, and no assurances of a closing can be given until all such items have been completed. The board of directors of each company has approved the transaction, and due diligence has been completed.
TransTechnology also announced that it had entered into letters of intent to sell its textile machinery and weather instrument divisions for total consideration of approximately $8 million in cash and notes. These transactions are subject to the completion of definitive purchase agreements and the completion of due diligence. If all three of the above transactions are completed within the expected time frames, and there can be no assurances given that such will be the case, TransTechnology will realize pre-tax gains aggregating approximately $4 million. The company expects to receive total consideration of $45.75 million, of which $40 million will be in cash and $5.75 in notes. TransTechnology Corp. is a manufacturer of industrial and aerospace products. -0- 3/6/92 /CONTACT: Michael J. Berthelot, vice chairman, investor relations of TransTechnology, 818-990-5920/ (TT) CO: Transtechnology Corp. ST: California IN: ARO SU:
DM-CH -- LA013 -- 5914 03/06/92 14:02 EST
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|Date:||Mar 6, 1992|
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