RF Industries Ltd., the Miramar area manufacturer that specializes in electronic interconnect products, said Oct. 31 that it sold its Comnet Telecom Supply subsidiary for $4.2 million in cash.
The buyer was RAP Acquisition Inc., an affiliate of Robert A. Portera, Comnet’s founder and its current president. Comnet is based in East Brunswick, New Jersey.
“The sale of Comnet is consistent with our business transformation toward a one company culture and operating structure to more efficiently leverage our capabilities across the entire business,” Robert Dawson, CEO of RF Industries (Nasdaq: RFIL), said in a statement distributed by the company.
“In the last year as I reviewed our business, we looked for redundancies and synergies to streamline operations and ensure a common sales strategy. We found that some of the characteristics of Comnet’s business didn’t match our go-to-market strategy since Comnet operates with a different sales model and margin profile than the rest of the company. We are pleased that we have reached a positive resolution as this divestiture reflects our ongoing focus on driving profitable growth and investing in our best opportunities as we work to make our business more predictable.”
Dawson said the business will use the $4.2 million for inorganic growth and strategic opportunities.