SL Industries, Inc. (SLI) announced today the divestiture of RFL Electronics Inc., an indirect wholly owned subsidiary of SLI. The divestiture is structured as a stock transaction with a cash sales price totaling $20 million, less transaction fees and subject to a final working capital adjustment, with proceeds of $2 million currently held in escrow pending resolution of certain indemnification provisions contained in the sales agreement. The Boonton Township, NJ based business was acquired by Hubbell Power Systems, Inc., a subsidiary of Hubbell Incorporated which will operate RFL Electronics as part of the Hubbell Power Systems business.
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“This divestiture was executed to streamline our portfolio allowing the Company to improve its returns by focusing our investments, resources, and management energy on our remaining three segments.” said Bill Fejes, SLI’s CEO. “We believe our remaining segments have significant upside opportunity, both organically and through select bolt-on synergistic acquisition opportunities, to improve returns and grow shareholder value.”
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