SOUTHAMPTON, PA — Environmental Tectonics Corp. (OTCID: ETCC) sold its wholly owned Polish subsidiary, ETC-PZL Aerospace Industries sp. z o.o., as the company narrows its operations around core businesses while retaining a long-term supply relationship with the former unit.
ETC sold 100% of ETC-PZL’s equity to Fabryka Artykułów Turystycznych i Sportowych Polsport sp. z o.o., a limited liability company incorporated in Poland.
The company said it expects the divestiture to have a positive impact on its ongoing consolidated financial results. Financial terms of the transaction were not provided.
ETC and ETC-PZL separately entered into a 10-year cooperation agreement under which the Polish business will serve as a preferred supplier for certain products it manufactures.
The agreement allows ETC to manufacture those products internally if the companies cannot reach mutually acceptable commercial terms, if ETC-PZL cannot meet supply requirements or if regulatory requirements prevent it from supplying the products.
“This transaction provides ETC a meaningful opportunity to improve operating results while maintaining continuity of supply and the flexibility to manufacture products internally,” Chief Executive Officer and President Robert L. Laurent Jr. said.
ETC described the sale as part of an effort to concentrate resources on its core businesses and align operations with its longer-term objectives.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.