- Eastern Co EML has sold its Argo EMS business (Argo). The conditions of Transaction were not announced.
- The company announced its intention to divest in August 2021 non-core businesses and began reporting these businesses as discontinued operations.
- With the recent sale, Eastern has completed the sale of all non-core businesses.
- The company expects to use the proceeds of the transaction primarily to reduce debt and strengthen its balance sheet.
- Eastern expects to record a gain on the sale of these assets in the fourth quarter of fiscal 2022.
- “The Argo divestment will further streamline our business portfolio and expand our largest businesses, which we believe will accelerate Eastern’s growth and strengthen our operating margins,” said CEO August Vlak.
- Price promotion: EML shares closed up 2.26% at $19.46 on Wednesday.
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