American Magnetics Unit Sells Hobby Products Firm

American Magnetics Corp. in Sherman Oaks said its Damon Corp. unit sold its hobby products business to a newly formed company for $43.7 million.

The new company was organized by Peter W. Smith & Co., a Chicago investment firm, and TCW Capital, an affiliate of Trust Company of the West.

American Magnetics, which makes optical products such as equipment used to scan credit and bank cards, said the sale proceeds would go toward reducing its short-term debt. Damon, acquired by American Magnetics last year, also operates clinical laboratories.