Gerber Scientific Inc. in South Windsor is selling its German laser-marking and engraving business to a U.S. competitor.
Gerber’s sale of FOBA Technology + Services GmbH, based in Ludenscheid, Germany, to ALLTEC Angewandte Laserlicht Technologie GmbH, the German laser business unit of Illinois-based Videojet Technologies Inc., must be approved by German authorities.
Price was not disclosed, but proceeds will reduce Gerber’s debt and pay its corporate expenses. The deal will close in about a month, Gerber said.
The FOBA sale is part of the company’s previously announced plan to dispose of underperforming and underused business units to provide greater flexibility under terms of its senior credit facility.
FOBA was acquired about a year ago, as part of Gerber’s acquisition of Virtek Vision International Inc., but the business didn’t mesh with Gerber’s core operations, said President and CEO Marc Giles.
Gerber’s machinery is used to make clothing and eyeglass lenses.
