The company, which last year moved its manufacturing operation to Stratford, has reached an agreement to sell its entertainment division to private equity firm Marwit Capital of Newport Beach, Calif., for $24.5 million, including the assumption of $16 million in debt.
The division operates 10 theatres and 69 screens in New Mexico, Colorado, Arizona and Wyoming.
“To continue to grow both our display and entertainment divisions from an investment stand point is a challenge,” said Michael Mulcahy, Trans-Lux president and co-chief executive officer, in a statement. “This sale will allow us to further reduce long-term debt and focus our efforts on our core display business, where we believe we can present a clear investment case and get better results for our shareholders.”
Jesup & Lamont Securities Corp., which has an office in Stamford, acted as financial adviser for Trans-Lux.