Tandy Corp., the nation’s largest electronics retailer, has reached an agreement with an unidentified company to sell its Memtek Products division for about $65 million, Tandy announced Monday.
Memtek is the magnetic tape division of Tandy and its subsidiary, TE Electronic Inc. It is best known for making Memorex brand audiotapes and videotapes.
TE expects to receive $30 million from the sale, the company said. The sale is anticipated to be a cash transaction, officials said.
John V. Roach, Tandy’s chairman and chief executive officer, said the sale is in line with plans to restructure the company.
Earlier this year, Tandy agreed to sell its computer-making operations to AST Research Inc. of Irvine for $105 million.
With the sale of Memtek, Tandy is left with two other units in TE Electronics: O’Sullivan Industries Inc., which builds ready-to-assemble furniture, and its Lika printed circuit board business.
The Memtek sale “marks the continued progress in our previously announced plans to divest our non-retail businesses and focus on Tandy’s retail formats,” Roach said.
Tandy has said it intends to concentrate on its Radio Shack, Computer City and other electronics stores.