Tuesday, November 1, 2005
© Copyright 2014
Gwinnett Daily Post
LAWRENCEVILLE - Wireless communications company EMS Technologies said it has reached an agreement to sell its idle Space and Technology/Montreal division.
MacDonald, Dettwiler and Associates of Vancouver, B.C., agreed to purchase the business unit for an undisclosed amount, the companies announced on Monday.
Although the terms of the transaction were not announced, Norcross-based EMS said the deal is expected to generate enough cash to reduce the company's debt by $20 million.
Both sides expect to wrap up the agreement this year.
EMS Technology CEO Alfred Hansen said the deal is a milestone for the company.
"Closing of the sale will strengthen our balance sheet (and) reduce our borrowing costs," Hansen said in a press release issued Monday.
It also puts the company in position to "expand our remaining business," Hansen said.
EMS recently said its second-quarter loss was affected by a $10 million charge related to its idle Space and Technology/Montreal. The company is also trying to sell its discontinued SatNet division.
Shares of EMS rose 38 cents Monday to close at $16.34.