Dynasil Divests XRF Product Line
WATERTOWN, Mass., Nov. 11, 2013 — Dynasil Corporation of America has sold its x-ray fluorescence (XRF) lead paint detector product line to Protec Instrument Corp., the US subsidiary of its longtime France-based distributor Protec SA, and used the proceeds to reduce its debt and emerge from default with its creditors, the company said last week.
The recent transaction is part of the company's plan to restructure to improve liquidity and pay down bank debt, Dynasil said. Divesting the XRF line allowed it to pay its primary lender, Santander Bank NA, approximately $1.2 million. Dynasil now owes Santander $5.3 million, down from the $9 million it owed as of Sept. 30, 2012. The company also has a subordinated $3 million note to Massachusetts Capital Resource Corp. that has not been paid down.
"This divestiture is an important step in our strategy to focus our business and improve our balance sheet," said Peter Sulick, chairman and CEO of Dynasil. "With this acquisition, Protec will be substantially expanding their operations in the US. Protec has been the sole distributor of the LPA [lead paint analyzer] in France and, as such, is very familiar with the product."
Sulick added that Dynasil also reduced costs by spinning off its tissue sealant technology into a new subsidiary, Xcede Technologies Inc., in October.
"While we cannot yet report that we are out of technical default with our creditors, we expect to continue to make near-term progress toward this goal," Sulick said.
Dynasil develops and manufactures detection and analysis technology, precision instruments and optical components for homeland security, medical and industrial markets.
For more information, visit: www.dynasil.com