I will now turn the call over to Joe.
Thank you, Linda, and thank you ladies and gentlemen for joining our call. We are pleased to announce that we have entered an agreement to divest of our aerospace equipment segment, also known as AMPAC In-Space Propulsion, for $46 million in cash. With this divestiture AMPAC has a made a major strategic shift. We believe this will enhance the value of our corporation from many perspectives.
First of all, it will allow AMPAC to focus on the growth of our pharmaceutical business activity. We anticipate this focus will also lead to the enhancement of our financial performance as we continue to build upon our core capability and grow our pharmaceutical related product lines and exploit the potential of efficiencies among our reduced number of production sites.Furthermore, the influx of cash as a result of this divestiture will allow us the flexibility of improving our balance sheet through reducing leverage and thereby position the company for future value added growth. Overall, aerospace and defense is forecasted to contract in certain segments and we expect consolidations to occur. Thus, you are either a buyer or a seller in the satellite space business as AMPAC ISP. AMPAC In-Space Propulsion business flourished over the last few years and is poised to grow through expansion of its customer base and product lines both in the United States and in Europe. Achieving this next level of growth in this marketplace however will require support from a much larger player in the aerospace business. It became clear that AMPAC did not have the horsepower to adequately support both the pharmaceutical chemicals play and the aerospace play at the same time. Therefore we decided to monetize our investment in the satellite propulsion business to support the focused pursuit of the pharmaceutical business.
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