Ault Announces Sale of Korean Subsidiary
Ault Inc. (Minneapolis, MN), a manufacturer of power conversion products, reported that it has sold its Ault Korea subsidiary to JEC Korea Co. Ltd. (South Korea) for $3.8 million. The transaction will have a book value loss of approximately $700,000. The agreement includes the receipt of $1.5 million in cash and $2.3 million in a secured note. The sale includes all assets and liabilities of Ault Korea Corp. and the use of the "Ault Korea" name in Korea for a period of three years.
As part of the terms of the agreement, JEC Korea will sell power conversion products only in Korea. Ault and JEC Korea have also agreed to continue a sub-contractor partnership. This relationship involves Ault manufacturing for JEC and JEC manufacturing product for Ault.