ARC Group Worldwide (ARCW) to Sell Tekna Seal in $10.5M Deal
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ARC Group Worldwide, Inc. (Nasdaq: ARCW) announced the completion of the sale of Tekna Seal LLC, a non-core subsidiary of ARC, for $10.5 million.
ARC Chief Executive Officer, Jason Young, commented, "Tekna Seal is a great business with a strong team. While we are disappointed it will no longer be part of ARC, we are pleased Tekna Seal, and all its highly valued employees, have found a home at an excellent private company where it will be a better strategic fit. While Tekna Seal has a great reputation within the hermetic seal industry, the products and services it provides largely reside outside ARC's holistic precision manufacturing solution. Therefore, we feel it is more efficient to focus our resources on opportunities that expand our core business in precision manufacturing and metal 3D printing."
Mr. Young continued, "The $10.5 million of gross cash proceeds from the sale will further increase ARC's financial resources and balance sheet flexibility. In particular, we recently announced our new Senior Credit Facility consisting of a $25.0 million Revolving Commitment and a $17.5 million, 20-year amortizing mortgage-based Term Loan. Pro forma for the Tekna Seal sale, amounts drawn on the Revolving Commitment will be approximately $3.1 million, and our total senior and subordinated debt, excluding mortgage-based debt, will be approximately $25.9 million. Overall, we believe ARC is in a strong capital position to support future growth of the Company."
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