From IRVINE, Calif., Jan 29, 2009 (GlobeNewswire via COMTEX)
Meade Instruments Corp. (Nasdaq:MEAD), a leading designer and manufacturer of optical products, including telescopes and binoculars, today announced that it has signed and closed an agreement to sell its European subsidiary (known as "Meade Europe") to a European management-led buyout group, Bresser GmbH, for gross cash proceeds of EUR 9.4 million (or approximately US$12.4 million). Meade Europe distributes the Company's products and also sells optical products under the Bresser brand name, which is primarily recognized in Europe. Meade also signed an exclusive distribution agreement setting terms for Meade Europe to continue to purchase product from the Company and distribute the Company's Meade and Coronado branded products throughout Europe.
In conjunction with the divestiture, the Company announced that it has completed its formal review of strategic alternatives and has disbanded the Strategic Alternatives Committee of the Board of Directors.
Tim McQuay, Chairman of the Strategic Alternatives Committee, commented, "After an extensive analysis of a broad range of strategic alternatives by our Committee, the Board of Directors has approved the sale of our European subsidiary. This divestiture is an important step in securing liquidity for the Company in this very difficult retail environment. While this completes the formal review of strategic alternatives, of course we will continue to evaluate our business plan and operations with a view toward rebuilding shareholder value."
The Company expects to continue a strong relationship with the Meade Europe team under its new ownership and both parties are committed to working together to ensure a smooth transition.
In connection with this sale, the Company also entered into a Limited Consent Agreement with its primary lender, Bank of America, N.A., which released the lender's interest in the collateral sold. As of the closing, the Company has no short or long-term debt on its balance sheet.
Bob
Meade Instruments Corp. (Nasdaq:MEAD), a leading designer and manufacturer of optical products, including telescopes and binoculars, today announced that it has signed and closed an agreement to sell its European subsidiary (known as "Meade Europe") to a European management-led buyout group, Bresser GmbH, for gross cash proceeds of EUR 9.4 million (or approximately US$12.4 million). Meade Europe distributes the Company's products and also sells optical products under the Bresser brand name, which is primarily recognized in Europe. Meade also signed an exclusive distribution agreement setting terms for Meade Europe to continue to purchase product from the Company and distribute the Company's Meade and Coronado branded products throughout Europe.
In conjunction with the divestiture, the Company announced that it has completed its formal review of strategic alternatives and has disbanded the Strategic Alternatives Committee of the Board of Directors.
Tim McQuay, Chairman of the Strategic Alternatives Committee, commented, "After an extensive analysis of a broad range of strategic alternatives by our Committee, the Board of Directors has approved the sale of our European subsidiary. This divestiture is an important step in securing liquidity for the Company in this very difficult retail environment. While this completes the formal review of strategic alternatives, of course we will continue to evaluate our business plan and operations with a view toward rebuilding shareholder value."
The Company expects to continue a strong relationship with the Meade Europe team under its new ownership and both parties are committed to working together to ensure a smooth transition.
In connection with this sale, the Company also entered into a Limited Consent Agreement with its primary lender, Bank of America, N.A., which released the lender's interest in the collateral sold. As of the closing, the Company has no short or long-term debt on its balance sheet.
Bob
R.A.C. Advisory Committee
NEAIC Co-Chairman
NEAF Advisory Committee
http://www.deer-pond-observatory.com
Warwick, New York
41.15984 -74.2541
[B]Takahashi MT 160
10" F4.5 Newt 8O
R200SS
Some kind of 127mm APO
Orion Atlas EQ-G
Losmandy G11 with Gemini
iOptron Mimi Tower
iOptrom Cube Pro
Meade DSI PRO II 8O
SBIG ST-10ME
Image Source 21AU04.AS
