IntriCon Completes Divestiture of Non-Core Electronics Business
June 02 2010 - 8:30AM
Business Wire
IntriCon Corporation (NASDAQ:IIN), a designer, developer,
manufacturer and distributor of body-worn medical and electronics
devices, today announced that it has completed the previously
announced divestiture of its non-core electronics business,
Anaheim, Calif.-based RTI Electronics, Inc. IntriCon has sold the
business to an affiliate of Shackleton Equity Partners, a Los
Angeles-based private equity group. Financial terms of the deal
were not disclosed.
“We are very pleased to have found an excellent ownership group
to take over RTI Electronics and retain our skilled and dedicated
group of electronics employees,” said Mark S. Gorder, president and
chief executive officer at IntriCon. “Completing the divestiture
allows us to devote more resources and capital to our core
body-worn device business. We have now positioned ourselves a ‘pure
play’ in body-worn technology, which we believe will appeal to a
wider range of investors.”
IntriCon had previously disclosed its plan to divest RTI
Electronics, and results of operations for the business have been
reported in discontinued operations since the fourth quarter of
fiscal 2009. Sargent Advisors LLC of Minneapolis, Minn., advised
IntriCon on the transaction.
“RTI Electronics is the established leader in manufacturing
high-quality thermistor, film capacitor and magnetic passive
electronic components,” said Mark Schelbert, managing partner of
Shackleton Equity Partners. “Through our commitment to maintaining
quality and our focus on new product development, we intend to
serve the loyal customer base of RTI Electronics, while expanding
our reach globally.”
About Shackleton Equity Partners
Founded in 2008 and based in Los Angeles, Shackleton Equity
Partners seeks to acquire businesses, or non-core divestitures,
located in the U.S., Canada and Mexico. Shackleton looks at
opportunities across all industries including software, hardware,
IT, manufacturing, telecommunications, technology, media, and heavy
equipment. Given the unique combination of operating, finance, and
investing experience, Shackleton is able to quickly manage the
investment process including due diligence, industry analysis, and
operations.
About IntriCon Corporation
Headquartered in Arden Hills, Minn., IntriCon Corporation
designs, develops and manufactures miniature and micro-miniature
body-worn medical and electronics products. The company is focused
on three key markets: medical, hearing health, and professional
audio and communications. IntriCon has facilities in the United
States, Asia and Europe. The company's common stock trades under
the symbol "IIN" on the NASDAQ Global Market. For more information
about IntriCon, visit www.intricon.com.
Forward-Looking Statements
Statements made in this release and in IntriCon’s other public
filings and releases that are not historical facts or that include
forward-looking terminology such as “may”, “will”, “believe”,
“expect”, “should”, “optimistic” or “continue” or the negative
thereof or other variations thereon are “forward-looking
statements” within the meaning of the Securities Exchange Act of
1934, as amended. These forward-looking statements include, without
limitation, statements concerning prospects in the miniature
body-worn device arena, new products, planned disposition of RTI
Electronics and expected charges, strategic alliances, future
growth and expansion, market fundamentals, future financial
condition and performance, prospects and the positioning of
IntriCon to compete in chosen markets and the Company’s planned
investments in research and development. These forward-looking
statements may be affected by known and unknown risks,
uncertainties and other factors that are beyond IntriCon’s control,
and may cause IntriCon’s actual results, performance or
achievements to differ materially from the results, performance and
achievements expressed or implied in the forward-looking
statements. These risks, uncertainties and factors include, without
limitation, risks related to the current economic crisis, the risk
that IntriCon may not be able to achieve its long-term strategy,
weakening demand for products of the company due to general
economic conditions, risks related to the company’s strategic
alliances and joint venture, possible non-performance of developing
the Centauri product and other technological products, the volume
and timing of orders received by the company, changes in the mix of
products sold, competitive pricing pressures, the cost and
availability of electronic components and commodities for the
company’s products, ability to create and market products in a
timely manner, competition by competitors with more resources than
the company, foreign currency risks arising from the company’s
foreign operations, ability to satisfy and maintain compliance with
the covenants under the company’s loan facility, the costs and
risks associated with research and development investments and
other risks detailed from time to time in the company’s filings
with the Securities and Exchange Commission, including the Annual
Report on Form 10-K for the year ended December 31, 2009. The
company disclaims any intent or obligation to publicly update or
revise any forward-looking statements, regardless of whether new
information becomes available, future developments occur or
otherwise.
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