Thomas & Betts to Divest Two Photonic Product Lines

MEMPHIS, Tenn., July 28 -- Thomas & Betts Corp. announced that it has entered into a letter of intent to sell certain of its broadband product lines -- specifically those optical products sold under the Photon and Megaflex brand names -- to Scientific Atlanta and its Canadian subsidiary in a two-part transaction. The move reflects Thomas & Betts' decision to focus on its core hardware product lines within its cable television business.
Terms of the transaction, which is expected to close by the end of August 1999, were not disclosed. Thomas & Betts expects to record an after-tax loss on the sale of approximately $1.3 million in the third quarter of fiscal 1999. The company anticipates that projected sales of these product lines through the first three quarters of 1999 will total $16 million. Thomas & Betts also announced that it would begin outsourcing production of its cable television amplifiers in an effort to reduce manufacturing costs.