10/3/2002 - Maxwell Technologies has completed separate transactions divesting its non-core computing systems and glass-to-metal seals businesses as part of the company’s strategy of focusing exclusively on high-reliability, high-value, proprietary power and microelectronics products.
Carl Eibl, Maxwell’s chief executive officer, said that the company has sold its I-Bus/Phoenix computing systems business to a group of that unit’s senior managers for $7 million of debt. He said that Maxwell also has sold its TeknaSeal glass-to-metal seals business to a group of private investors in a separate transaction that will generate net proceeds of approximately $5 million in cash.
"These transactions support Maxwell’s strategy of concentrating on our core power and microelectronics product platforms to drive the company’s future growth and profitability," Eibl said.
Eibl said that Maxwell received an immediate net cash payment of approximately $4 million for TeknaSeal, and that the remaining $1 million of the purchase price has been deposited in an escrow account and will be paid out quarterly, beginning in 2003. He said that the note Maxwell took in exchange for the computing systems business calls for payments over three years, beginning in 2004.
With the divestiture of the computing systems business and relocation of the former I-Bus/Phoenix power systems business to Maxwell’s electronic components facility, Eibl said that the company will vacate and sell the 90,000 square-foot San Diego facility that had housed I-Bus/Phoenix’s North American operations.
"By the end of the year, Maxwell’s operations will be located in two primary facilities, one in San Diego, and another in Rossens, Switzerland," Eibl said. "This lean, efficient operating structure positions the company for significant profit leverage as our core businesses grow."
About Maxwell Technologies
Maxwell Technologies applies industry-leading capabilities in power and microelectronics to develop and commercialize components and systems for customers in multiple industries, including transportation, telecommunications, consumer and industrial electronics, medical and aerospace.
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