Teleflex Inc. announced today that it has signed an agreement to sell its power systems business to Fuel Systems Solutions. Teleflex will receive cash proceeds of $14.5 million.
The deal will not impact its marine business.
The transaction is expected to be completed in the quarter ending Sept. 27, at which time the power systems business will be reflected in the company's financial statements as a discontinued operation.
"Considering the market conditions impacting our aerospace cargo container and marine operations, the company determined that $6.7 million of non-tax deductible goodwill in the cargo container operations and $2.3 million of indefinite lived trade names in the marine operations were impaired," Teleflex said in a statement.
The company said it does not expect the transaction to have a substantial impact on its annual earnings per diluted share.