Derlan sells two discontinued operations
Derlan Industries Limited DRL
Shares issued 28,833,318 Jul 9 close $2.30
Mon 12 Jul 99 News Release
Mr. J. David Williamson reports
Derlan has divested of two of its discontinued operations. First its
subsidiary K and M Electronics, Inc. of West Springfield, Mass., was sold
to ITT Industries, Inc. of White Plains, N.Y. In a related transaction,
Derlan also sold the K and M land and buildings to Klondike Investment
Group, Inc. of West Springfield. Total proceeds from the K and M
transactions were $36.5-million. Derlan has also divested of the remaining
California based assets of its subsidiary Derlan Inc. of Santa Ana, Calif.,
to Trig Holding Incorporated of California, for proceeds of $21.4-million.
Total proceeds from all transactions announced today were $57.9-million.
The K and M business consists of miniaturized high-voltage power supplies,
for night vision and other applications, and channel electron multipliers.
In November, 1998, Derlan announced target proceeds of $125-million from
the divestment of several discontinued operations. With the completion of
the transactions announced today, Derlan has now substantially completed
the sales of its discontinued operations as announced in November and
generated proceeds of approximately $150-million. The divestments of the
remaining discontinued operations are progressing.
In December, 1998, the board of directors of Derlan engaged Deutsche Banc.
Alex Brown as investment banking adviser to examine all options available
to Derlan to develop value for shareholders. This program is progressing
and further announcements will be made as soon as it is appropriate to do
so.
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