Kent Electronics Corp. has sold most of the assets of its Futronix wire and cable redistribution unit to Houston Wire & Cable for an undisclosed sum.
Kent acquired Futronix just three years ago, but has decided it doesn't fit into the company's long-term strategy, said David Cobb, assistant treasure at the Houston-based distributor.
"We want to focus on areas that offer higher growth," Cobb said. Those include Kent Components, its electronic components distribution business; Kent Datacomm, a data-network systems integrator; and K*Tec, its contract electronics manufacturing unit.
Kent bought Futronix in 1997. It also acquired another company, Wire and Specialties Corp., and merged it into Futronix.
Cobb said Futronix generated sales of $93 million in the fiscal year ended in March, down 4% from the previous year. It represented 9% of Kent's total revenue.
Cobb said Houston Wire & Cable had agreed to acquire Futronix last year, but the sale was held up for various reasons. He declined to elaborate.
"This transaction is consistent with our strategy of strengthening our core operations and effectively deploying our resources to serve high growth applications, said Larry D. Olsen, Kent's president and chief operating officer. "We believe the sale of our redistribution assets to Houston Wire & Cable will create a business that will benefit both the employees and customers of Futronix.