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EDO Sells Deer Park Facility for $29M

NEW YORK CITY-In order to free up assets, EDO Corp. sells its Deer Park, NY manufacturing facility to Deer Park Enterprises LLC.

By Barbara Jarvie | Updated on July 31, 2003

NEW YORK CITY-EDO Corp., which provides military products and professional services to the US and allied governments and their prime defense contractors, will sell its manufacturing facility in Deer Park, NY to Deer Park Enterprise LLC for cash consideration of $29 million. The property being sold includes 726,000 sf of buildings and 81 acres of land. EDO obtained the property as a result of the acquisition of AIL Technologies Inc. in April 2000.

Under the terms of the agreement, EDO received $1 million of the sale proceeds upon signing. An additional $21 million is due at closing, which is expected to occur on Sept. 26. The New York City-based EDO will have up to two years to vacate the facility, and the remaining $7 million will be received at that time. The transaction resulted in a pre-tax loss of $9.2 million, which was recorded in the second quarter ended June 28.

“This sale will free up assets for more productive use, including acquisitions,” James M. Smith, EDO’s CEO, said in a statement. “Our decision was based on the results of a recently completed company-wide facility plan that evaluated a number of potential uses for this property. That plan considered future increases in production volumes that are expected due to our participation in major programs, such as the F/A-22 and the Joint Strike Fighter. We concluded that the Deer Park facility will not meet future requirements, and thus an outright sale is our best option.”

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