Presstek to Sell Lasertel Subsidiary
Tuesday, November 24, 2009
Press release from the issuing company
GREENWICH, CT -- Presstek, Inc., a leading manufacturer and marketer of digital offset printing business solutions, today announced it has entered into a definitive agreement to sell its wholly owned subsidiary, Lasertel, Inc. to SELEX Sensors and Airborne Systems (US), Inc. ("SELEX S&AS"), a business development, marketing and U.S. product support arm of SELEX Galileo. SELEX Galileo is part of Finmeccanica's defense electronics business unit.
The sale price will be approximately $10 million, comprised of $8.0 million in cash upon sale of the business and approximately $2.0 million of laser diodes for Presstek's future product requirements. The transaction is expected to close during the first quarter of 2010 and is subject to approval from certain governmental agencies in the United States and Europe. Presstek plans to use proceeds from the sale to reduce debt.
Lasertel develops and manufactures high-powered laser diodes for a variety of industries, including graphic arts. Presstek uses these laser diodes in its Presstek DI(R) digital offset presses and the Dimension Excel Series of computer-to-plate systems.
In addition to the sale price and the transfer of Presstek-specific inventory, SELEX S&AS will assume the current lease on the Lasertel property in Tucson, AZ. A supply agreement will also be entered into that will provide the currently utilized laser diode product to Presstek at existing prices for a two year period.
"This sale to SELEX S&AS will place Lasertel into a large organization whose core business is closely aligned with Lasertel's mission," said Presstek Chairman, President and Chief Executive Officer, Jeff Jacobson. At the same time, it allows Presstek to focus on its core business and further reduce its debt. While selling Lasertel has been a key objective during the past year, we needed to ensure that we received an appropriate value for Lasertel. We are pleased that we are able to accomplish that with this sale."