TORRANCE, CALIF. — Summa Industries is selling two metal processing operations that fall outside the Torrance company's focus on plastic products.
Two Orange County, Calif., investors have agreed to acquire Summa subsidiary GST Industries Inc. and GST's unincorporated Stang industrial products division.
Announced June 19, the definitive agreement calls for payment of $1.2 million in cash, a seven-year, 10 percent convertible note for $1.5 million, and rights to a maximum of $2 million in future royalties.
Subject to several conditions, the deal is scheduled to close by the end of August.
The two Santa Ana, Calif., operations employ 30 and generate annual sales of less than $4 million. GST makes aerospace parts, and Stang produces specialty fire-fighting equipment. Summa purchased both in 1991 but subsequently has concentrated on buying plastics processors.
Summa reported profit of $1.4 million on sales of $23.9 million for the quarter ended May 31. The firm had profit of $620,000 on sales of $12 million for the comparable 1997 quarter. Summa is accounting for GST and Stang as discontinued operations.