FAIRFIELD, Ohio (AP) _ Kroll-O’Gara Co. is selling a unit that has manufactured armored cars for U.S. presidents to focus on its investigation and intelligence services business.
The company said Monday that Armor Holdings Inc., a Jacksonville, Fla.-based provider of security products and services, is paying up to $56.5 million for the division.
Kroll-O’Gara said it lost $33.9 million in 2000, or $1.52 per share, on revenue of $310.6 million compared with losses of $1.9 million, or 9 cents per share, during 1999 on revenue of $305.2 million.
The Fairfield, Ohio-based company reported a fourth-quarter loss of $22.1 million, or 99 cents per share, on revenue of $44.7 million compared with a loss of $8.4 million, or 38 cents per share, on revenue of $46.1 million in the last quarter of 1999.
The unit being sold includes the armored vehicle manufacturing and sales business and the operations of International Training Inc., which offers driver and other security training programs. The division fortifies cars used by U.S. presidents, business executives and celebrities.
The deal is expected to close before the end of August, pending regulatory approvals. The boards of both companies have approved the transaction and shareholder approval will not be required.
Kroll-O’Gara also announced that it has discontinued its Voice and Data Communications Group operations. The 2000 loss from the operation and its planned disposal is costing the company $8.2 million, or 37 cents per share.
Shares of Armor Holdings closed unchanged on the New York Stock Exchange at $16.50. Shares of Kroll-O’Gara rose 4.5 percent, or 24 cents to $5.55 on the Nasdaq Stock Market.
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