Video Display Corporation in Agreement to Sell Lexel Imaging Systems
26 Julho 2013 - 12:01PM
Video Display Corporation (Nasdaq:VIDE), a global leader in design
and manufacture of specialty displays and display solutions, today
announced a definitive agreement was signed to sell primarily all
of the assets and liabilities of the Company's Lexel Imaging
Systems, Inc. subsidiary (Lexel) to Citidal Partners LTD, LLC.
Under the terms of the agreement, Video Display Corporation
(VDC) will receive cash and Citidal debt securities for the sale of
Lexel Imaging Systems, a manufacturer of specialty Cathode Ray
tubes for military, medical, industrial and simulation market
requirements. Lexel, which is part of the VDC family of
display companies, accounted for approximately 13 percent of the
total corporate revenues for the most recent fiscal year ended
February 28, 2013.
The transaction, which has been approved by the boards of
directors of both companies, is subject to customary closing
conditions, including review and approval of VDC's commercial
banker, PNC Bank, and it is expected to close on or before
September 23, 2013. All of Lexel's current employees and management
staff are expected to remain in place in Lexington, KY and will
join Citidal at the close of the transaction.
"Lexel Imaging is excited to be joining with the experienced
Citidal team as their many industrial contacts and connections are
expected to greatly enhance and expand the scope of products and
markets currently being served by our company," said Bill Frohoff,
president of the Lexel Imaging subsidiary. "This acquisition
enables Lexel to address market opportunities in numerous arenas
outside of the legacy CRT display business and complements our
strong electronics manufacturing capabilities."
Ron Ordway, CEO of Video Display Corporation, commented, "The
sale of our Lexel Imaging subsidiary is part of an overall program,
announced in September of 2012, to enhance VDC shareholder value
through the sale of VDC, either in whole or through the sale of its
integral divisions and subsidiaries as opportunities presented
themselves in the best interest of the shareholders." He
further stated, "We are continuing to discuss the sale of
additional subsidiaries with parties interested in acquiring
components of the VDC family of display companies and will report
on progress of those negotiations as it occurs."
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.
This news release contains certain forward-looking statements,
including the expected benefits of our pending disposition of Lexel
Imaging Systems, the expected timing of the closing of the
acquisition, and the number of employees who are expected to join
Citidal at the closing of the transaction, which are based on our
current expectations and are subject to numerous risks and
uncertainties that may cause these forward-looking statements to be
Risks that may cause these forward-looking statements to be
inaccurate include among others: we may experience delays in the
timing; Citidal may not be able to maintain and grow or maintain
the customer relationships required to achieve its anticipated
revenue and margins, and therefore fail to perform on its debt
obligations to VDC; the Company may incur one-time charges, adverse
tax consequences, amortization of intangible assets or impairment
of goodwill, which could harm our results of VDC's operations; the
Lexel Imaging Systems disposition may not be consummated due to the
failure to satisfy the various conditions to closing, including the
need for banking approval; and the other risks detailed from time
to time under the caption "Risk Factors" and elsewhere in our
Securities and Exchange Commission filings and reports, including,
but not limited to, our Annual and Quarterly Reports on Forms 10-K
and 10-Q.
CONTACT: Ronald D. Ordway, Chairman and CEO
770-938-2080
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