Eastern Divests Argo EMS Business For Undisclosed Sum

• Eastern Co (NASDAQ: EML) has sold its Argo EMS business (Argo). The terms of the transaction were not disclosed.

• The company announced in August 2021 its intent to divest non-core businesses and began reporting those businesses as discontinued operations.

• With the latest sale, Eastern has completed the sale of all non-core businesses.

• The company expects to use the proceeds from the transaction primarily to reduce debt and strengthen its balance sheet.

• Eastern expects to record a gain on the sale of these assets in its fourth quarter of fiscal 2022.

• "The divestiture of Argo will further streamline our portfolio of businesses and build scale in our largest businesses, which we believe will accelerate Eastern's growth and strengthen our operating margins," said CEO August Vlak.

• Price Action: EML shares closed higher by 2.26% at $19.46 on Wednesday.

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