BEI to Spin Off Sensors and Systems Unit

BEI Electronics Inc. said it plans to spin off its sensors and systems business into a new company called BEI Technologies, while retaining and operating its medical-device business under a new name, BEI Medical Systems Co. The San Francisco-based maker of sensors, motors and control systems said it will distribute the outstanding shares in the new company pro rata to all holders of BEI Electronics common stock. The distribution, which is expected to be tax-free, is planned for the end of September. After that, shares of both companies would trade in the public markets. The newly formed company would focus on engineered components and subsystems for the automotive, aerospace and automation markets, the company said. BEI Electronics’ former defense systems business would be discontinued within the next year.