BOCA RATON, Fla. (AFX) - Devcon International Corp., a provider of electronic security services, said Wednesday it will sell its construction division for $12.2 million to a private investment group.
The sale will help Devcon complete its transformation to a security services business, said company President and Chief Executive Stephen J. Ruzika.
After the deal is complete, the only unit remaining from Devcon's construction and materials operations will be its St. Martin materials operation.
Devcon said it will record a $2.6 million pre-tax impairment charge in the second quarter related to the sale.
The buyers of the construction division are led by The Symonette Group, a privately held investment holding company based in the Bahamas.
Devcon shares rose 23 cents, or 3.7 percent, to $6.50 in morning trading on the Nasdaq. The stock has ranged between $6.21 and $15.35 over the past 52 weeks.
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