Magnetek finds buyer for telecom power division
Menomonee Falls-based Magnetek Inc. has completed the sale of the assets of its telecom power systems (TPS) business, which manufactures backup power systems for wireless applications, to Myers Power Products Inc. of Corona, Calif.
The purchase price of $1.25 million (subject to post-closing adjustments) was paid in cash by Myers to Magnetek upon closing. Magnetek had previously written down the value of the TPS business to an estimated fair value of $1.3 million in June.
In April 2008, Magnetek announced its intention to divest its telecom power business and accordingly began accounting for the business as a discontinued operation in its fiscal 2008 fourth quarter.
As previously announced, Magnetek intends to concentrate its efforts on enhancing shareholder value through investment in and growth of its core power control and systems businesses. The company also intends to focus on strategic acquisitions in its product lines serving the material handling, elevator, and alternative energy industries.
"We’re pleased we could come to an agreement with Myers Power and look forward to pursuing growth opportunities in our core areas of expertise," said Peter McCormick, Magnetek’s executive vice president and chief operating officer, who will soon become chief executive officer of the firm.