Andrews Corp. to sell satellite business

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Andrew Corp. to sell satellite business

By James P. Miller | Tribune staff reporter 8:48 AM CST, November 6, 2007
Andrew Corp. said it agreed to sell its "underperforming" satellite communications business to a Cleveland private equity firm, in a transaction that will generate a pretax charge of up to $20 million for the Westchester maker of communications-related equipment.

Under its agreement with Resilience Capital Partners, Andrew said, it will receive up to $39 million in total potential cash consideration, as well as a 17 percent to 20 percent ownership stake in the satellite communications company Resilience will own.

At closing, which is expected to take place before year-end, Andrew said it will receive $9 million cash, and $5 million in notes. Andrew said that it may receive up to $25 million in additional cash after three years, if the operation it is selling meets certain financial targets.


Depending on the ownership stake and other factors, Andrew said it expects to record a charge of $15 million to $20 million related to the sale.

The satellite communications group had sales of $104 million in the latest fiscal year, the company said.

Andrew itself is currently in the process of being acquired for $2.6 billion by CommScope Inc.; that transaction is expected to close by the end of the calendar year.

Source: Chicago Tribune