Aldila subsidiary to sell 50% interest in Carbon Fiber Technology in cash deal |
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Wed, 28 Nov 2007 23:17
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SAN FRANCISCO (Thomson Financial) - Aldila Inc. said late Wednesday its subsidiary Aldila Materials Technology Corp. has agreed to sell its 50% interest in Carbon Fiber Technology LLC to SGL Carbon Fibers and Composites Inc.SGL Carbon Fibers owns the other half of Carbon Fiber Technology and is a subsidiary of SGL Group - The Carbon Company.SGL will pay $17 million in cash, plus cash equal to one-half of CFT's net working capital as of Nov. 30, the date the sale is scheduled to close.Aldila's subsidiary Aldila Golf Corp. and Carbon Fiber Technology also entered into an agreement to allow Aldila Golf to continue to purchase up to 900,000 pounds of carbon fiber during the first year, and up to 1 million pounds of carbon fiber in subsequent years.The supply agreement will run for 5 years, subject to certain early termination provisions. Aldila Golf will pay Carbon Fiber Technology's costs plus an agreed mark-up for carbon fiber purchased under the supply agreement.Shares of Aldila, a Poway, Calif.-based graphite golf shaft manufacturer, closed the regular session up 46 cents at $15.75.Brigid Gaffikinbg/gmCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Flow gets multimillion-dollar deal 