BOULDER, CO APRIL 08, 2008 -- In Today's 8-K Filing From Vishay Intertechnology Inc. (NYSE: VSH): On April 7, 2008, Vishay sold the automotive modules and subsystems business unit (ASBU) to Gores Equity, LLC, a Boulder, CO based private equity firm.
ASBU was originally acquired by Vishay as part of the April 1, 2007 acquisition of International Rectifier's Power Control Systems business. As previously disclosed, Vishay determined that ASBU would not satisfactorily complement Vishay's operations.
The sale of ASBU is expected to result in a loss of between $25 million and $35 million. Vishay will record an impairment charge to reduce the carrying value of the net assets held for sale to the expected sales proceeds as of the end of the first fiscal quarter of 2008. The exact amount of the impairment charge cannot be determined until the closing balance sheet has been prepared. The impairment charge will be recorded as part of the loss from discontinued operations.
As additional consideration for the sale, Vishay is eligible to receive a portion of the proceeds of certain liquidity events involving ASBU, after the private equity firm has received distributions of its invested capital plus a specified return and after certain other payments. Given the uncertainties of this possible future receipt of proceeds, Vishay has ascribed zero value to this contingent consideration in estimating the impairment charge.
About GORES EQUITY, LLC
Gores Equity, LLC is a private equity firm focused on acquiring controlling interests in mature and growing businesses, which can benefit from the firm’s operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. Gores Equity, LLC has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. Headquartered in Boulder, CO, Gores Equity, LLC maintains offices in Boulder, Colorado, San Diego and Los Angeles, CA, For more information call 303 531-1000.