TransTechnology Intends to Sell Lundy Financial

TransTechnology Corp., a Sherman Oaks concern that makes a variety of industrial and defense-related products, said it signed a letter of intent to sell its Lundy Financial Systems division to Recognition Equipment Inc. for $39 million in cash.

The sale would result in a pretax gain of $8 million, it said.

The proposed sale is part of TransTechnology’s previously announced restructuring that includes divesting several divisions to reduce costs and cut debt. The company also plans to move its headquarters to Union, N. J., by March.

TransTechnology said it has also received offers totaling $11.1 million in cash and notes for three divisions that make textile machinery, plastics and weather instruments. The offers are being reviewed by TransTechnology’s financial adviser; if the deals are completed, they would result in a pretax gain of about $2 million, the company said.

The sale of Lundy Financial Systems, which is subject to a definitive agreement and the approval of both companies’ boards of directors, is expected to be completed by the end of TransTechnology’s fiscal year, which ends March 31.

Recognition Equipment, based in Dallas makes word processing systems.