Key Tronic completes sale of Las Cruces facility
May 15, 2007
Key Tronic Corporation (Nasdaq:KTCC) announced that it closed the sale of its Las Cruces, New Mexico facility on May 11, 2007 in accordance with the Purchase and Sale Agreement between Key Tronic Corporation and Adevco Corporation, dated December 29, 2006, as amended. The total sale price was approximately $4.3 million.
Key Tronic received approximately $2.8 million in cash and a $1.5 million note. The note is for excess land which is covered by a flood zone designation. The note is payable once the flood zone designation has been removed from the excess land. If the flood zone designation is not removed, Adevco has the option of paying the note or reconveying the excess land to Key Tronic.
"The sale of this facility, which we have not utilized since June 2005, is part of our continuing efforts to maximize the efficient utilization of our assets and strengthen our balance sheet," said Jack Oehlke, President and Chief Executive Officer.