Broadwind Energy Inc. has completed the sale of its Badger Transport Inc. subsidiary to BTI Logistics LLC. Proceeds from the sale include $1 million cash, a $1.5 million secured promissory note and 100,000 shares of Broadwind common stock held by the buyer.
In addition, BTI Logistics assumes approximately $2.9 million of debt and capital leases, plus approximately $1.6 million of operating lease obligations. The purchase price is subject to final working capital adjustments.
‘In late 2010, we determined that owning a captive logistics company was not core to our operating and growth strategies,’ says Peter C. Duprey, president and CEO of Broadwind Energy. ‘BTI will continue to provide logistics and transport services to our customers from time to time. The sale of this business will reduce our financial obligations and enable us to focus more closely on our tower, gearing and service offerings for customers in the energy and infrastructure markets.’
In connection with the sale, Broadwind has classified the business as a discontinued operation in its 2010 financial statements and recorded a loss of approximately $10 million on the transaction.
SOURCE: Broadwind Energy Inc.