SFE Sells Electro Dynamics to Ease Cash Problems
SFE Technologies in San Fernando agreed to sell its Electro Dynamics Division to a group of Colorado investors for $3.2 million in cash and notes.
The division, based in Overland Park, Kan., makes quartz crystal frequency control devices, which are components used in various consumer products such as color televisions, telephones and radios.
The sale is aimed at alleviating a cash crunch at SFE, an electronic components maker that last week announced it had fallen into technical default on about $16 million in loans because of a drop in its net worth. SFE also said it lost $1.2 million in its fiscal third quarter that ended July 30 on sales of $9.2 million.
The investors formed a new company, Electro Dynamics Crystal Corp., for the proposed acquisition.