Perceptron, the developers of a wide variety of non-contact laser and other specialized inspection and measurement solutions for both commercial and industrial applications, today announced that, as of August 30, the company had sold certain assets and liabilities from their secondary business segment, the Commercial Products Business Unit (CBU) to Inspectron, Inc.
In a move considered as being the best of all possible choices for maximizing shareholder value by management regarding the CBU, which only accounted for 9% of the company’s total sales in fiscal 2012, the sale to Inspectron will allow PRCP to focus squarely on the core Industrial Business Unit (IBU) segment. The CBU was responsible for handling the design and marketing on measurement/detection devices geared towards professional tradespeople in the relevant construction, electrical, mechanic, and plumbing markets.
President of Inspectron, Richard Price, just so happens to be the CBU’s former Senior VP and the deal represents a very smooth transition, with Inspectron being tasked under the terms of the agreement to handle extant business requirements like service parts, warranty obligations, and vendor commitments. Inspectron has thus acquired essentially all pertinent business operations, from inventory and the customer contracts on down the line to patents, tooling, and trademarks for a reported $838k in cash, with PRCP retaining the some $608k in CBU’s accounts receivable balance.
CFO of PRCP, Jack Lowry, pointed to the upcoming scheduled release of fiscal year 2012 financial results (Sept 4) and subsequent earnings call (Sept 5) as an opportunity for investors to get a closer look at the CBU deal, since more information would be offered at that time. The company will be reporting CBU’s financial results as discontinued operations, with the prior year’s data handled on a consistent basis.
Solid move for PRCP that will allow a better treatment of the core business, already known the world over, especially in automotive and manufacturing, where Perceptron’s advanced metrology solutions help speed and stabilize extremely complicated manufacturing processes.
President and CEO of PRCP, Harry Rittenour, explained that a wide range of decisions had come up regarding the secondary segment and been parsed, resulting in this deal. Rittenour further explained that as the IBU accounted for essentially all growth, profitability, and over 90% of total sales from fiscal 2012, the decision to sell off the CBU was really the pick of the litter among other options and offered the best overall valuation for not only shareholders, but PRCP as a whole, including the customer base.
Rittenour expressed a sense of satisfaction over completing the deal and asserted that the strength of the core business over the last year offered profound potential for 2013 and beyond, as the IBU now becomes the sole focus of efforts. This should result in even greater penetration in key global markets where the company has already established itself as an indispensible part of many industrial manufacturing process control workflows. More attention can now be paid to the Value-Added Services aspect of the IBU as well, which provides training and customer support services to help cement client bonds.
For more information on Perceptron, Inc. you can visit the company’s website located at: www.Perceptron.com
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