Axsys Technologies Inc., a developer of surveillance cameras, imaging systems and motion control technologies, announces it has completed the sale of its distributed products business to an affiliate of Tonka Bay Equity Partners LLC for $15.5 million in cash.
Proceeds from the sale of AST Bearings will be used to repay all of Axsysˇ existing debt. As a result, the company says it expects a cash balance in excess of $10 million at the end of the year.
¨The successful sale of AST Bearings marks the culmination of Axsysˇ transformation into a focused organization concentrating on the delivery of high-performance optical and motion control technologies to the security, defense and space markets,〃 says Stephen Bershad, chairman and CEO of Axsys Technologies. ¨In addition, with a debt-free balance sheet, we are well-positioned to invest in the growth of our company.〃
To align the company around its core market segments, Axsys is reorganizing into two business units: the Surveillance Systems Group and the Imaging Systems Group. Scott Conner, formerly the companyˇs vice president of strategic planning and corporate development, will oversee both groups in the newly created role of president and COO.
Randy Moore, former executive vice president and general manager of Kollsman Inc., has joined Axsys as the new president of the Surveillance Systems Group, which encompasses all of the companyˇs surveillance product lines.
The Imaging Systems Group includes all of the Axsysˇ optical and motion control subsystem businesses, will be led by James Howard, former vice president and general manager of the Infrared Optics business unit and the founder of Telic Inc., which he sold to Axsys in 2004.
The motion control businesses will continue to be managed by Chalmers Jenkins.