meirda
11-07-2007, 05:08 PM
Communications systems provider Andrew Corporation reached an agreement to sell its satellite communications business to Resilience Capital Partners. The Cleveland-based private equity firm has agreed to pay upwards of $39 million in total potential cash, in addition to an ownership stake in the new satellite company that Resilience will establish with the acquired Andrew assets.
Andrew's ownership stake will be from 17 percent to 20 percent depending on the newly-formed company's capital structure at closing, which has yet to be finalized, the company said.
Upon closing, Andrew said it will receive $9 million in cash at closing, which is expected to occur prior to the end of 2007, and $5 million in seller's notes set to mature three years after closing. In addition, Andrew may receive up to $25 million in cash after three years based upon the achievement of certain financial targets by the new company.
Dependent upon the ownership stake received and the book value of the satellite communications assets at the date of closing, Andrew expects to record a charge against earnings of approximately $15 million to $20 million related to the sale. With sales of approximately $104 million in fiscal 2007, satellite communications comprises nearly five percent of Andrew's overall revenues employing more than 520 people in nine countries.
Andrew's ownership stake will be from 17 percent to 20 percent depending on the newly-formed company's capital structure at closing, which has yet to be finalized, the company said.
Upon closing, Andrew said it will receive $9 million in cash at closing, which is expected to occur prior to the end of 2007, and $5 million in seller's notes set to mature three years after closing. In addition, Andrew may receive up to $25 million in cash after three years based upon the achievement of certain financial targets by the new company.
Dependent upon the ownership stake received and the book value of the satellite communications assets at the date of closing, Andrew expects to record a charge against earnings of approximately $15 million to $20 million related to the sale. With sales of approximately $104 million in fiscal 2007, satellite communications comprises nearly five percent of Andrew's overall revenues employing more than 520 people in nine countries.