August 31, 2007 — HEI Inc. announced it entered into an agreement to sell all of the assets of its radio frequency identification (RFID) division to Smartrac Technology US Inc., a wholly-owned subsidiary of Dutch based Smartrac N.V.
The transaction is structured as a sale of substantially all the assets of the RFID division, including inventory, receivables, customer contracts and customer lists, and the assumption of substantially all of the liabilities. The purchase price to be paid at closing is $3 million cash and the parties expect to close the transaction prior to the end of the HEI’s 2007 fiscal year end on Sept. 1. As a result of this transaction, HEI expects to see a gain from the sale of assets in the fourth quarter of approximately $1.5 million, prior to any employee obligations, severance and other transaction-related costs. HEI intends to use the sale proceeds to pay down existing debt obligations.
HEI designs, develops and manufactures microelectronics, subsystems, systems, connectivity and software solutions for OEMs engaged for the medical equipment and medical device, hearing, communications, and industrial markets.
RFID technology allows patients and equipment in hospitals to be tracked using attached microchips, which can be
For more information: www.heii.com