NEXXUS LIGHTING Sells Its Legacy Commercial And Pool Businesses For Approximately $2.3 Million
Oct 31, 2010 Nexxus Lighting has announced that it has completed the sale of certain assets of its legacy Commercial and Pool businesses to Next Step Products, LLC. The divested businesses consist of the manufacture, marketing and sale of fiber optic lighting and light emitting diode (LED) products used for applications in commercial, architectural, pool and spa markets, but does not include the Company’s Array business or the business of the Company’s wholly-owned subsidiary, Lumificient Corporation.
The transaction strengthens Nexxus’ cash position. Under the terms of the transaction, Next Step paid Nexxus $1.0 million at closing, and will pay approximately $1.3 million over the following 7 months.
Mark Masterman, Nexxus’ former division president for the businesses, organized Next Step and will continue to manage the businesses. The units had approximately 20 employees and generated revenue of approximately $6.6 million and $4.1 million in 2009 and year-to-date June 2010, with proforma operating losses of approximately $1.3 million and $0.8 million for the same periods, respectively.
Next Step will operate from Nexxus’ Orlando facility under a sublease agreement for a period of between 6 and 9 months. Nexxus has transferred warehouse and distribution operations for the Array product line to a 3rd party distribution company and there will be no disruption of Array shipments due to this transaction.
Author: BIO T&T
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