600 Group, an industrial-engineering company, has recently announced that it has signed a letter of intent for the potential disposal of a majority interest in its industrial laser businesses in the U.S. The deal is valued at $9.5 million in cash.
According to the company, the letter covers the sale of 80% of its stake in its wholly-owned TYKMA Electrox and Control Micro Systems businesses. If the deal goes through, the proceeds from the sale will be used to pay off the company’s bank borrowings and provide it with essential operating cash.
The non-binding agreement has been made between 600 Group’s subsidiary, 600 Group Inc., and an unnamed U.S.-based private equity firm. As part of the agreement, 600 Group will retain a 20% interest in the businesses.
However, this 20% interest is subject to an option that can be exercised in the month following the end of the businesses’ fiscal years 2025 and 2026. The option will only be exercisable if the businesses surpass pre-agreed earnings before interest, taxes, depreciation, and amortization targets.
This potential disposal marks a significant development for 600 Group as it aims to optimize its operations and financial position. The deal, if finalized, would not only provide the company with much-needed cash but also allow it to focus on its core areas of expertise.
For more information and updates on this deal, please stay tuned.