ASTRONOVA, INC. (NASDAQ:ALOT) Files An 8-K Regulation FD DisclosureItem 7.01
On September28, 2017, AstroNova, Inc., signed an exclusive worldwide asset purchase and licensing agreement with Honeywell International, Inc.’s aerospace division to manufacture and repair Honeywell’s narrow-format flight deck printers for two aircraft families. Under the agreement AstroNova’s Aerospace business unit will take over the manufacturing of new printers as well as support services and supplies for printers for two of the world’s most popular narrow-body aircraft, the Boeing 737 and Airbus A320.
The agreement provides for an up-front payment to Honeywell of $14.6 million in cash, an additional payment of $400,000 upon completion of the manufacturing transition, the assumption of certain liabilities, and royalty payments based on gross revenues from the sales and services associated with the printers, with minimum total royalty payments equal to $15 million in the aggregate, to be paid over the next ten years. AstroNova is funding the up-front payment through its existing credit facility, as amended to increase the amount available for borrowing under its revolving credit line to $15,000,000.
Manufacturing of the Honeywell printers will be transitioned from its current location in Asia to AstroNova’s plant in West Warwick, Rhode Island over the next several months.
About ASTRONOVA, INC. (NASDAQ:ALOT)
AstroNova, Inc., formerly Astro-Med, Inc., designs, develops, manufactures and distributes a range of specialty printers, and data acquisition and analysis systems. The Company operates through two segments: QuickLabel and Test & Measurement (T&M). The Company offers both hardware and software, which incorporate technologies in order to acquire, store, analyze and present data in multiple formats. It sells specialty printing systems, and test and measurement systems under the brand names, including QuickLabel. The QuickLabel segment offers product identification and label printer hardware, software, servicing contracts and consumable products. The T&M segment offers a suite of products and services that acquire and record visual and electronic signal data from local and networked sensors, as well as wired and wireless networks. It serves markets, such as aerospace, apparel, automotive, avionics, chemicals, computer peripherals, communications, distribution, and food and beverage.