Ballantyne Strong (BTN) Announces Sale of Convergent Media Systems for $23 Million
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Ballantyne Strong, Inc. (NYSE American: BTN) (“Ballantyne Strong” or the “Company”) today announced that it has completed the sale of its wholly-owned subsidiary Convergent Media Systems, LLC (“Convergent”) for a total enterprise value of approximately $23.2 million.
Mark Roberson, Chief Executive Officer of Ballantyne Strong, commented, “Convergent represents a successful turnround, transitioning a business that was generating significant losses to a profitable operation and a marketable asset. After monetizing the value created at Convergent, the Company will be better positioned to expand its other operating businesses and strategic investment portfolio. As a result of the transaction, we expect to recognize an income statement gain of approximately $15 million or $1.00 per share in the first quarter of 2021.
“We are excited about our continuing operating businesses and the value in our investment portfolio. Strong Entertainment is strengthening its industry-leading position, with new multi-year service and supply agreements with two of the leading operators in the cinema industry. Firefly is continuing its rollout of digital advertising on taxis and rideshare vehicles, FG Financial recently completed its investment in the sponsor of FG New America (NYSE: FGNA) and entered into its first reinsurance contract, and GreenFirst Forest Products has performed exceptionally well following its leadership additions and strategic investments in the Canadian timber business.
“Moving forward, we are encouraged by the opportunities we’re seeing in the marketplace and believe we are well positioned to create stockholder value.”
More information about the transaction will be available in a Current Report on Form 8-K, which will be filed with the Securities and Exchange Commission within four business days of the closing of the transaction.
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