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TUCKER, Ga., July 26, 2013 (GLOBE NEWSWIRE) -- Video Display Corporation (Nasdaq:VIDE), a global leader in design and manufacture of specialty displays and display solutions, today announced a definitive agreement was signed to sell primarily all of the assets and liabilities of the Company's Lexel Imaging Systems, Inc. subsidiary (Lexel) to Citidal Partners LTD, LLC.
Under the terms of the agreement, Video Display Corporation (VDC) will receive cash and Citidal debt securities for the sale of Lexel Imaging Systems, a manufacturer of specialty Cathode Ray tubes for military, medical, industrial and simulation market requirements. Lexel, which is part of the VDC family of display companies, accounted for approximately 13 percent of the total corporate revenues for the most recent fiscal year ended February 28, 2013.
The transaction, which has been approved by the boards of directors of both companies, is subject to customary closing conditions, including review and approval of VDC's commercial banker, PNC Bank, and it is expected to close on or before September 23, 2013. All of Lexel's current employees and management staff are expected to remain in place in Lexington, KY and will join Citidal at the close of the transaction.
"Lexel Imaging is excited to be joining with the experienced Citidal team as their many industrial contacts and connections are expected to greatly enhance and expand the scope of products and markets currently being served by our company," said Bill Frohoff, president of the Lexel Imaging subsidiary. "This acquisition enables Lexel to address market opportunities in numerous arenas outside of the legacy CRT display business and complements our strong electronics manufacturing capabilities."
Ron Ordway, CEO of Video Display Corporation, commented, "The sale of our Lexel Imaging subsidiary is part of an overall program, announced in September of 2012, to enhance VDC shareholder value through the sale of VDC, either in whole or through the sale of its integral divisions and subsidiaries as opportunities presented themselves in the best interest of the shareholders." He further stated, "We are continuing to discuss the sale of additional subsidiaries with parties interested in acquiring components of the VDC family of display companies and will report on progress of those negotiations as it occurs."