Sierracin Sells Off Power-Systems Unit : May Be Start of a Larger Restructuring
Sierracin has sold its power-systems division to a San Diego electronics firm for about $2.3 million in cash and notes in what may be the beginning of a larger restructuring of the Sylmar-based aerospace and electronics company.
Joseph F. Swyt, the company’s president, said Sierracin is studying its seven remaining divisions with an eye toward focusing on its strengths and selling weaker business units.
“Sierracin is a diversified mini-conglomerate of businesses that need more attention,” Swyt said, noting that the company’s products range from aircraft canopies to electronic components.
Loss in 1985
The Chatsworth-based power-systems division, which makes power supplies for computers and other high-technology equipment, lost $1.3 million before taxes on sales of $7.4 million in 1985. Overall, Sierracin had a net loss of $2.7 million on sales of $74.9 million last year.
The buyer was privately held Valor Electronics. Its president, Jack VanderKnyff, said the acquisition will complement his firm’s power-components business.
Valor, which had sales of $6 million last year, said it will keep the unit’s headquarters in Chatsworth and make no management changes. The power-systems unit has 40 employees in Chatsworth but does all its manufacturing in Tijuana, where it has 195 workers.
Unit Back in Black
Swyt said cost-cutting and higher sales have brought the power-systems unit back into the black this year. He said 1985 was a bad year for the highly competitive electronic-power-supply business, which suffered from the continuing slump in the computer industry.
A Sierracin spokesman said the sales price matched the value of the unit on the company’s books, so it is neither making nor losing money on the deal.
Sierracin’s asset sale follows its appointment last month of Swyt as president and chief operating officer. The post was held by Chairman Christoph Tribull on an interim basis after the departure last summer of former president Peter K. Maeussnest, who is suing Sierracin and Tribull, alleging wrongful dismissal.
