Broadwind sells off transport unit
Broadwind Energy, an industrial firm focused on the wind energy industry, this week completed the sale of its Badger Transport subsidiary to BTI Logistics.
Proceeds of the sale include $1 million cash, a $1.5 million secured promissory note and 100,000 shares of Broadwind common stock held by the buyer. In addition BTI assumed about $2.9 million of debt and capital leases, plus about $1.6 million of operating lease obligations.
'In late 2010 we determined that owning a captive logistics company was not core to our operating and growth strategies,' said Peter C. Duprey, Broadwind's president and chief executive officer, in a statement.
'BTI will continue to provide logistics and transport services to our customers from time to time,' he added. 'The sale of this business will reduce our financial obligations and enable us to focus more closely on our tower, gearing and service offerings for customers in the energy and infrastructure markets.'
In connection with the sale, Broadwind has classified its former Badger Transport business as a 'discontinued operation' in its 2010 financial statements, and recorded a loss of about $10 million on the transaction.