Doug Lung /
11.09.2007 12:00 AM
Andrew Sells Satellite Communications Business
Andrew Corp. is selling its satellite communications business to Resilience Capital Partners, a Cleveland-based private equity firm.
“We believe the Satellite Communications business and its people will have a brighter future and greater prospects for success as a standalone company with a singular focus of meeting the needs of its worldwide customers,” said Jude Panetta, group president of satellite communications at Andrew. “We are pleased with this agreement, and are optimistic that the Satellite Communications business will achieve its full potential as a standalone business under the guidance of Resilience Capital.”
Panetta noted that Andrew had been working during the past two years to move away from unprofitable businesses and markets and enter new and more profitable markets, including military satellite communications, electronics and mobile platforms.
Under the agreement, Andrew will receive $9 million in cash at closing, which is expected to occur at the end of 2007, and an additional $5 million in seller's notes that will mature three years after closing. If the new company achieves certain financial targets, Andrew may receive up to an additional $25 million in cash after three years.
“We at Resilience are confident that, when given the opportunity to be decoupled from Andrew, this business and its people will find itself to be an even more significant integrated systems supplier in its marketplace and to its customers,” said Bassem Mansour, managing partner of Resilience Capital.
Andrew’s satellite communications division had sales of approximately $104 million in Fiscal 2007 and contributed nearly 5 percent of the company’s overall revenues. The division employs approximately 520 people in nine countries. Andrew said that except for Reynosa, Mexico, employees—who will be transitioned into other Andrew businesses over time—it is expected that all other satellite communications division employees will transfer to or get offers to join the new company.
The new company will be called ASC Signal Corp. after the acquisition is completed.