The Allied Defense Group [ADG] yesterday said it has sold its NS Microwave business unit to 3DRS International Inc., completing the divestiture of its Electronic Security division begun last fall with the sale of its Global Microwave Systems subsidiary to Britain’s Cobham.
Terms of the deal, which was concluded last Friday, were not disclosed. ADG is focusing on its ammunition business. Moreover, the sale will give ADG additional cash to fund its working capital requirements to meet the needs of its growing ammunition business.
ADG late last year said it planned to divest California-based NS Microwave.
“This transaction is another step in our strategic transformation and marks the divestiture of the last non-core asset in our portfolio,” John Marcello, ADG’s president and CEO, said in a statement. “The sale of NS Microwave will further enhance our ability to focus our time, attention and resources on our core competencies in the global ammunitions market and reflects our ongoing drive to maximize shareholder value.”
In the first quarter of its fiscal year, ADG posted a $317,000 net loss on $31.5 million in sales related to its ammunition business, which operates in Belgium and the United States.