Diversified aerospace and defense company Pemco Aviation Group Inc. (PAGI.O: Quote, Profile, Research) said it agreed to sell its commercial services segment, Pemco World Air Services Inc., to an affiliate of Sun Capital Partners Inc. for about $43 million.
Pemco said proceeds from the deal will be used to pay off all its bank debt and fund pension liabilities, following which it will have a cash balance of $10 million.
Following the transaction, expected to close in the fall of 2007, Pemco said it will continue to provide aircraft maintenance and modification services for its governemnt and military customers under the name DefensePemco Inc. or another name which does not contain "Pemco." (Reporting by Nitya Rao in Bangalore)
