Moog Inc. has sold Ethox Medical, a Buffalo-based medical devices company, as it considers whether to sell the rest of its medical devices business segment.
The Elma-based motion control equipment maker sold Ethox for an undisclosed amount to Dempsey Ventures, a Grand Rapids, Mich.-based private equity firm that focuses on health care products. Moog said the sale would generate an after-sale, non-cash loss of about $5 million, or 11 cents per share, that will be reflected in its fiscal third-quarter results, which are due to be released in late July.
Moog said it has hired RBC Capital Markets LLC to help with a strategic assessment of the remainder of its medical devices segment, “including the possibility of divesting the entire segment.” Moog entered the medical devices market in 2006.
Moog bought Ethox in January 2009 for $15.2 million, in a deal intended to broaden Moog’s product base for disposable medical products. Ethox has 88 full-time employees in Buffalo.
In Moog’s fiscal second quarter, operating profits in its medical device business fell 12 percent from a year ago to $1.3 million, while its sales increased 1 percent to $35.5 million.