NEWS Simmonds expects to net $26 million in divestiture
Simmonds Capital Limited (SCL), Willowdale, Ontario, Canada, expects the proceeds of the sale of interests in the radio communications equipment distribution business to reach $26 million ($35 million Canadian), including cash and publicly traded securities. Under current plans, SCL will sell the U.S. land mobile radio distribution business of Kansas City, MO-based Midland International (an SCL subsidiary) to Intek Diversified, a Torrance, CA, company controlled by SCL. In turn, a subsidiary of Securicor Group, Surrey, UK, will be acquired by Intek in exchange for Intek stock–placing Securicor in control of Intek and, thus, Midland International. At closing, SCL will receive pre-tax proceeds of about $26 million and will retain an 11% interest in Intek.
In 1995, SCL’s radio communications equipment distribution business had sales of $35 million and incurred a loss of $7 million. SCL expects to realize a profit from the transactions with Intek and Securicor.