Material Sciences sells EMD division to TouchSensor
Elk Grove Village, IL—Material Sciences Co. (MSC) reports that it’s selling substantially all of the assets of its EMD business to TouchSensor Technologies (TST) LLC.
Elk Grove Village, IL— Material Sciences Co. (MSC) reports that it’s selling substantially all of the assets of its EMD business to TouchSensor Technologies (TST) LLC. EMD produces field-effect technology for sensors, switches, and interface solutions under an exclusive license agreement with TST for the consumer electronics and transportation markets.
Though there are many market opportunities for field-effect technology, MSC concluded but that EMD isn’t a strategic fit with it primary coated and laminated material-based solutions. As a result, MSC agreed to sell of EMD to TST in exchange for release from contractual commitments to TST and the assumption of EMD’s contractual obligations. EMD will be reported as a discontinued operation from the second quarter of fiscal 2006.
Specifically, MSC is relieved of $2.8 million in fee obligations under the license agreement in fiscal 2006, as well as approximately $800,000 of obligations related to certain cost sharing arrangements between MSC and TST projected for the 18 months ending in November 2006. The company expects the transaction will result in a pretax loss of approximately $2 million, including severance and other transaction-related costs.
Control Engineering Daily News Desk
Jim Montague, news editor