UPDATE: Aetrium Acquires KBS Building Systems for Approximately $10.5M
Aetrium Incorporated (Nasdaq: ATRM) announced today that it has acquired substantially all of the assets of KBS Building Systems, Inc. and certain of its affiliated entities. KBS, which is based in South Paris, Maine, manufactures, sells, and distributes modular housing units for both residential and commercial use. KBS's website is http://www.kbs-homes.com.
"Aetrium is excited to expand its operations through the acquisition of KBS, which we believe will generate long-term value for our shareholders," stated Jeffrey E. Eberwein, Chairman of the Board of Directors of the Company.
Consideration for the acquisition included $5 million in cash, a $5.5 million six-month promissory note made by a wholly-owned subsidiary of Aetrium, the assumption and payoff of approximately $1.4 million in debt, and the assumption of certain other liabilities related to the purchased assets. The acquisition was financed by $6.5 million in loans ($0.5 million of which is convertible into Aetrium common stock) from Lone Star Value Investors, LP, an investment fund managed by Mr. Eberwein.
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