Resdel to Sell Unprofitable Unit in Texas

Times Staff Writer

Struggling Resdel Industries of Newport Beach has agreed to sell its San Antonio, Tex., manufacturing subsidiary to a private group of Texas and California investors for an undisclosed sum.

With the sale of Resdel Manufacturing, the parent company rids itself of a money-losing operation and raises some sorely needed cash, said Jack B. Spencer, Resdel’s chief financial officer.

Resdel lost $6.4 million on sales of only $7 million in the 6 months ended Dec. 31. The firm lost $8.3 million for the year ended June 30.

The company said it expects to report an unspecified loss in the current quarter as a result of the sale of the Texas operation.


Resdel Manufacturing produces signal processors, military radios, grenade launchers and other defense-related products. The Texas unit accounts for about 10% of the parent firm’s sales.

Resdel Industries’ largest operating unit is Resdel Engineering in Arcadia, a manufacturer of anti-submarine warfare systems, avionics components, microwave equipment and other defense-related products.

Spencer said the sale is intended to focus the company’s resources on its strong suits, primarily engineering, and research and development work.

Under the agreement, the investors group will also obtain the rights to certain government contracts Resdel acquired when it purchased Texas Mil-Tronics Corp. The deal also includes the sale of rights to another government contract held by another Resdel subsidiary unit in Arcadia for the production of military radios.


Spencer said the purchaser is a group of Texas and northern California investors who have formed a new company specifically to acquire Resdel Manufacturing. The group will be headed by Bob Work and Roy Whitehead, both of Sacramento, whom Spencer described as “seasoned businessmen in the government contracting field.”

Neither Work nor Whitehead could be reached for comment Monday.

The sale is subject to the signing of a definitive agreement and other conditions, the company said.