The financing for the deal includes $18.5 million in cash and a $1 million, three-year promissory note bearing 7.5% interest.Mace Security International (Nasdaq: MACE) in Mount Laurel today announced it inked a $19.5 million agreement to sell its 12 car-wash facilities in Arizona to CW Acquisition. The payment will include $18.5 million in cash and a $1 million, three-year promissory note bearing 7.5% interest.
The assets have a recorded net book value of approximately $17 million and generated about $10 million in revenue in 2005. As part of the deal, Mace will pay down about $10.3 million of debt associated with the Arizona car washes and a pre-payment penalty of $1.5 million to $2.5 million. Mace will also pay about $2.9 million in other debt.
Nine of the car washes being sold are owned and three are leased. Mace is a manufacturer of electronic surveillance and personal-defense products, and owns and operates car- and truck-wash facilities. Company stock climbed $0.17 to $2.54 in afternoon trading.