Dewey Electronics To Expand Military Generator Product Lines With Asset Purchase From Goodman Ball Inc.
OAKLAND, N.J., Feb. 20, 2013 /PRNewswire/ — The Dewey Electronics Corporation (OTCBB: DEWY), a maker of military power systems, announced today that it has signed a definitive agreement (the “Agreement”) to purchase certain assets, rights of manufacture and intellectual property from Goodman Ball Incorporated, a maker of military equipment that is based in Menlo Park, California. The purchase of these assets is part of the ongoing liquidation of Goodman Ball by its parent company, C.E. Niehoff & Co.
The Agreement includes acquiring the IP for two diesel generators, Model 4310 and Model 3310, intended for use on military vehicles, as well as several smaller unrelated product lines. The Model 4310 is a five-kilowatt 28-volt direct current (DC) auxiliary power unit (APU) currently deployed on the M113 Armored Personnel Carrier command vehicle. The Model 3310 is a twenty-kilowatt DC APU under development for possible use on a future vehicle program.
As part of the Agreement, Dewey will assume responsibilities to maintain certain Goodman Ball contracts with the United States Department of Defense that pertain to the acquired product lines. Currently, Goodman Ball does not have a backlog of orders for the generators included in the Agreement.
Dewey Electronics will also take possession of Goodman Ball’s existing inventory for these product lines on a consignment basis and will pay Goodman Ball as the inventory is sold to customers. Dewey Electronics will also acquire the necessary tools, fixtures and intellectual property to manufacture and sell these product lines.
The product lines being acquired do not compete with Dewey Electronics existing product lines, and are not expected to have a material impact on Dewey Electronics Corporation’s operating results or balance sheet over the next 12 months. If Dewey is able to capitalize on the new opportunities through this Agreement, there could be an accretive impact on future period results.
John Dewey, President and CEO of Dewey, said, “We are pleased to have an opportunity to expand our business through this agreement with Goodman Ball. And we are excited to be adding these larger DC APUs to our existing line of generators. In addition to pursuing future sales for these acquired models, we will also use the underlying technology to develop new larger hybrid diesel and battery based power solutions.”
The terms of the agreement will not be disclosed.
About The Dewey Electronics Corporation
The Dewey Electronic Corporation of Oakland, New Jersey, founded in 1955, is a diversified manufacturer of sophisticated electronic and electromechanical systems for the military. Visit the website at www.deweyelectronics.com.
Goodman Ball, Inc. (GBI) was founded in 1983 as a manufacturer of spare military equipment for the U.S. Government. In recent years it had expanded its range of products to include water purification units and power generation equipment. In 1997 GBI was acquired by C.E. Niehoff and Co. and is a wholly owned subsidiary.
About C.E. Niehoff
C.E. Niehoff & Co, of Evanston, Illinois, was founded in 1923 and is an employee owned company specializing in the design and manufacture of heavy duty brushless alternators for military and commercial applications.
This release contains forward-looking statements as defined in Section 21E of the Securities and Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties including those involved in the Company’s dependence upon its Department of Defense business, as further described in our filings under the Securities Exchange Act.
KCSA Garth Russell CONTACT: (212) 896-1250 firstname.lastname@example.org www.kcsa.com
SOURCE Dewey Electronics Corporation