Agreement in Principle to Sell its VDR Business
Rutter Announces Agreement in Principle to Sell its VDR Business
St. John’s, NL, Canada – May 5, 2011/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 date.
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
For further information please contact:
Fraser Edison, President and CEO, Rutter Inc. 1-709-576-6666
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.
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