RF Industries to Purchase New York FirmTuesday, June 7, 2011
RF Industries Ltd., a San Diego distributor of cable assemblies and telecommunications devices, said June 7 it agreed to acquire Cables Unlimited Inc. in a cash and stock transaction valued at $5.6 million.
At the time of the closing of the purchase, June 15, RFI said it will pay $2.8 million in cash and about 760,000 shares of its common stock for the Long Island, N.Y.-based business that makes interconnecting cable and wire harnesses used in computers, networking, audio, coaxial, fiber optic and specialty applications.
Cables Unlimited designs and manufacturers the cables, harnesses and assemblies for aerospace, medical, industrial, consumer, appliance, automotive and computer electronics applications, RFI said.
In its second quarter ended April 30, RFI reported net income of $407,000, up 23 percent from the prior year’s second quarter. Net sales for the period were $4.4 million, up 16 percent from the like quarter of last year.
The company also increased its quarterly dividend payment from 2 cents to 2.5 cents per share, payable to shareholders of record on June 30.
In early trading on Nasdaq June 7, shares of the company under the ticker RFIL were down 6 cents to $3.54. Its 52-week range is $2.50 to $4.47.
— Mike Allen