Astrodyne Corp. announced that it has acquired the assets of specialty power supply manufacturer RO Associates from Emrise Corp.. RO Associates is an engineering company and a developer of module-based power conversion solutions, which are now a mainstay in military, industrial and other harsh environment markets. Current products are deployed on airborne, shipboard and land vehicle applications, as well as a variety of industrial and medical products. Based in the Silicon Valley, RO Associates has developed a broad product line of what it describes as high quality, highly efficient products.
Peter Murphy, President and CEO of Astrodyne commented, "The inclusion of a well established provider of high-end products to the military and other demanding markets complements Astrodyne’s already significant product offerings. With over 4,000 SKU’s already available to our customers we are adding a high-reliability product line that we see demand for in many of our traditional markets. We are especially pleased to add the talented RO Associates engineering team to our company as we seek to accelerate the introduction of new products for emerging applications."
Upon closing, EMRISE received net proceeds of approximately $600,000 after fees and other costs related to the transaction. The proceeds will be used by the company for working capital purposes. The purchase price is subject to an upward or downward working capital adjustment within 90 days of the date of closing.
EMRISE Chairman and Chief Executive Officer Carmine T. Oliva said that completing this transaction will help strengthen EMRISE’s working capital, will reduce its operating costs, will improve its bottom line going forward and it will free EMRISE management, with the support of Boenning & Scattergood, Inc., to focus on additional strategic initiatives designed to eliminate its term debt.
"The sale of RO associates is the fourth sale that we have successfully completed in a little more than 18 months," Oliva added. "With the sale of these four businesses, we believe we have demonstrated our commitment and ability to take the steps necessary to eliminate our term debt and to focus our business in those areas that we believe will allow us to maximize value for our shareholders and other stakeholders."
