Video Display Corp Successfully Completes Sale of Aydin Displays
03 Settembre 2013 - 6:02PM
Video Display Corporation (Nasdaq:VIDE) (the "Company") today
announced the successful completion of the sale of the assets and
specified liabilities of the Company's Aydin Displays Inc
subsidiary. The subsidiary was sold to an acquisition affiliate of
Sparton Corp. (NYSE:SPA), for a combination of cash, a 12 month
hold-back of 8% of the upfront purchase price and an additional
potential earn-out in excess of $6.0 million based upon the
potential achievement of projected levels of EBITDA being generated
by Aydin Displays during the 12 month period subsequent to August
30, 2013 closing date.
"The successful closing of this transaction is a significant
accomplishment for Video Display Corporation," said Ron Ordway,
Chief Executive Officer of the Company. "The cash generated from
this transaction allows the Company to terminate an unworkable
relationship with its primary lender, PNC Bank, by totally paying
off all debt held by PNC Bank. In addition to eliminating all asset
based revolver debt, it significantly reduces the Company's term
debt from $3.6 million to $1.35 million which is held by the
Company's secondary lender, Community and Southern Bank of Ga. The
termination of PNC as the Company's lender suspends their ability
to invoke penalties of approximately $2000 per day, a policy that
has cost the Company nearly $400,000 in penalties invoked during
the last 6 months since PNC acquired our former prime bank, RBC
Bank of GA."
In August, 2012, the Company announced its intention to enhance
shareholder value by seeking buyers for Video Display Corporation
as a whole or for its individual divisions and subsidiaries. The
sale of the Aydin business is a significant first increment in that
program. The Company previously announced entering into an Asset
Purchase Agreement with Michigan based Citidal LLC in which Citidal
will acquire primarily all of the assets and liabilities of the
Company's Lexel Imaging subsidiary of Lexington, KY for cash and
notes. The closing date of that transaction is scheduled to occur
on or before September 23, 2013, subject to completion of due
diligence and completion of financing arrangements by the
buyer.
After the completion of the Aydin asset sale and the agreed upon
potential sale of the Lexel Imaging operations, Video Display
Corporation's subsidiaries remaining to be sold are comprised as
follows:
A: Z-Axis Inc. / Bear Power --- Phelps NY based designer and
manufacturer of specialty power supplies and provides contract
manufacturing services throughout the Northeastern US.
B: VDC Display Systems --- Cape Canaveral, FL based
designer and manufacturer of display systems for commercial and
military training and simulation systems, control rooms and other
high end display requirements.
C: Aydin Visual Solutions --- Tucker, GA based designer and
supplier of large venue video walls for broadcast studios, board
rooms and other applications requiring high quality state of the
art display applications.
D: Aydin CyberSecurity --- Palm Bay, FL. based manufacturer
and test facilities of TEMPEST electronics for cyber security
markets primarily used in situations where top security is a
necessity.
It is the intent of Video Display's management team to continue
the development of these remaining operations until such time that
they warrant sufficient value to buyers and thereby further enhance
the value to be received by the Company' shareholders.
About Video Display Corporation:
VDC companies are leading designers, manufacturers, and
suppliers of displays and display systems for the most demanding
OEMs, prime contractors and specialty contractors around the world.
The VDC companies have led the way over the past 38 years providing
standard and custom products to today's leading global OEMs
crossing all major display requirements in defense, aerospace,
industrial automation, medical, and transportation as well as
training and simulation markets.
CONTACT: Ronald D. Ordway, Chairman and CEO
770-938-2080
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