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IEC sells Southern California Braiding for $2.5 million
IEC sells Southern California Braiding for $2.5 million
Listen to this articleIEC Electronics Corp. said Friday it has sold its Southern California Braiding Co. Inc. business to Los Angeles-based DCX-CHOL Enterprises Inc. for roughly $2.5 million–one-tenth of the price it paid for the firm less than five years ago.
IEC shares fall after Q4 loss on charge |
Jeffrey Schlarbaum, IEC president and CEO, said the sale allows the Newark, Wayne County, firm to redirect its resources. He added it will have an immediate impact on IEC’s financial health.
"This divestiture is consistent with the company’s strategy to enhance IEC’s focus on our core business and vertical markets,” Schlarbaum said in a statement.
IEC acquired Southern California Braiding in late 2010 for some $25 million. It provides wire and cable products to the military and defense market.
IEC has struggled since then with performance and financial issues related to Southern California Braiding.
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