Magnetek Announces Intent To Divest Telecom Power Systems Business
Magnetek, Inc. announced that it will pursue the divestiture of its Telecom Power Systems business. This business represented approximately $16.0 million of Magnetek’s total sales of $103.8 million in fiscal 2007. The company states that it will focus its efforts on enhancing shareholder value through investment in and growth of its core power control and systems businesses, as well as strategic acquisitions in its product lines serving the material handling, elevator, and alternative energy industries.
"Magnetek’s strategy is to focus on our core businesses where we have growth opportunities and a sustainable competitive advantage," said Magnetek Chief Executive Officer, David Reiland.
As previously announced, the company made a recent acquisition of the assets and business of Enrange, LLC, a wireless control manufacturer providing radio remote controls for the material handling, industrial, hydraulic and rock mining industries.
The Telecom Power Systems business is headquartered in the company’s Menomonee Falls, Wisconsin facility and has a sales office in Dallas, Texas. Beginning with the fourth fiscal quarter, the company will account for the Telecom Power Systems business as a discontinued operation.
