Devcon sells construction division, reaches agreement with investors
BOCA RATON, Fla.--With the recent sale of its construction division for approximately $5.3 million, announced March 22, Devcon International has made significant progress toward its goal of becoming a pure-play security company. At the same time, investor agreements announced April 2 have given the company some time to execute its plan.
By entering into forbearance and amendment agreements with certain institutional investors and filing for a 10-K filing extension, Devcon will be able to "focus on the electronic security business, the whole reason we made the investment in the first place," said Robert Farenhem, chief financial officer of Devcon International.
The sale of the construction division leaves Devcon with only one legacy operation, a ready mix company on the island of St. Martin. Donald L. Smith, Devcon's former chairman, is a principal of the buyer of the construction assets.
"We think we've assembled a compelling group of assets in Florida and New York," Farenhem said. "We're working hard and would like nothing more than to allow Devcon to focus on day-to-day operations instead of being sidetracked by capital structure concerns."
For more on this story, see the May issue of Security Systems News.