Who's buying Cornwall?
I listened to the conference call today discussing the Tri-S earnings report, if only because its Cornwall subsidiary does some security installation, even though its Paragon guarding company generates most of its revenue. Surprise for me, it was announced the company would be selling off its Cornwall Group, which it purchased back in 2005 for around $15 million. So, who's the buyer? They wouldn't say yet, but there's apparently a letter of intent that's been signed and they expect to announce terms at the end of next week. The company's kind of desperate to get rid of Cornwall, since it needs to pay down some debt and it's in the process of closing on another financing facility with Wells Fargo. Though the company grew some 50 percent last year, it's losing money to the tune of $14 million in 2008 (though $6 million of that is a goodwill impairment). But growth is well liked, apparently. One investor was so enthusiastic about the potential of the company that he wondered if Tri-S had takeover protections in place. It does not.