All Components will pay approximately $6.9 million in cash with the remainder of the purchase price to take the form of the assumption of certain liabilities.

Reptron, Tampa, Fla., will continue to operate its Reptron Manufacturing Services and Reptron Display and Systems Integration divisions.

"This sale is another important element of our strategy to focus on our key strength in electronics manufacturing services and display systems that we believe will ultimately result in restoring profitable operating results for Reptron Electronics Inc.," said Paul J. Plante, Reptron's president and chief operating, in a statement. "Proceeds from the sale will be used to pay down our secured indebtedness owed to Congress Financial Corporation (Florida)," he added.

The sale of the memory module division follows the June 2003 divestiture of Reptron's former electronic component distribution division to Jaco Electronics Inc., Hauppauge, N.Y.

The memory module division recorded revenue of approximately $16 million, or about 18% of Reptron's total net sales, and a net loss of approximately $1.4 million, for the first six months of 2003, ended June 30.

"Our acquisition of Reptron's Memory Module business and its K-Byte Memory product line is an important strategic move for All Components", said Robert Cooper, All Components' chief executive. "All Components will now compete in the retail market segment where we previously had no direct presence. Our commitment to the sale of memory products combined with our financial strength should enable growth and stability for the K-Byte Memory product line."

By: DocMemory
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