ST. JOHN'S, NL, May 5 /CNW/ - Rutter Inc. (TSX: RUT) today announced it
has reached a non-binding agreement in principle to sell its Voyage
Data Recorder ("VDR") business to Netwave Systems B.V. The sale is
subject to negotiation of a mutually acceptable asset purchase
agreement, and will require certain lender and regulatory approvals.
Specific terms cannot be disclosed at this time, due to ongoing
negotiation and confidentiality obligations. With the proceeds from
this sale, proceeds from the previously announced sale of the
Consulting Engineering business, and existing cash, the Company expects
it will retire its Term A loan prior to the August 31, 2011 maturity
Fraser Edison, President and CEO of Rutter Inc., says "We are proud of
what we have accomplished with this product line, capturing a
significant share of the VDR retrofit market that existed from 2002 to
2010. With the end of the VDR retrofit market; there has been ongoing
consolidation of VDR suppliers. We believe key success factors going
forward in this market are having a stronger presence in Europe,
further development of the next generation product, and acquiring and
integrating other competitors. With the VDR product line gradually
having become a smaller part of our revenue stream, we believe that
focusing on our radar product line and manufacturing businesses
provides the best opportunities for the Company; accordingly, we
believe it is the right time to exit the VDR market space."
About Rutter Inc. - Rutter is an enterprise focused on providing innovative technologies
and engineering solutions. Rutter's global network supplies
technologies to improve efficiency and safety in the marine, defense,
transportation, oil and gas sectors from its headquarters in the
Province of Newfoundland and Labrador.. For more information go to: http://www.rutter.ca
This press release may contain forward-looking statements that involve
risks and uncertainties. These statements reflect current expectations
and are subject to a number of risks and uncertainties including but
not limited to, change in technology and general market conditions. Due
to the many risks and uncertainties, Rutter Inc. cannot assure that
forward-looking statements that may be contained in this press release
will be realized.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
SOURCE RUTTER INC.
For further information:
President and CEO
Tel: 1 709 576 6666