Odetics Inks Sale and Leaseback for Anaheim Headquarters Site
Anaheim-based Odetics Inc. has entered escrow on its headquarters site, 16 acres across the street from Disneyland. Odetics plans to lease its space back from the buyer, the company said.
The name of the buyer wasn’t disclosed by Odetics. Sources close to the deal declined to comment.
“We believe monetizing our real estate holdings represents an important step in strengthening Odetics’ balance sheet through debt retirement and improved liquidity,” said Odetics Chief Executive Gregory Miner in a statement. “The leaseback of the facilities will minimize any business interruption to us. Over the coming weeks, we will be working diligently to bring this transaction to a successful conclusion.”
Miner took over as chief executive in January when founder Joel Slutzky stepped down.
The sale has been a long time coming. Cash-strapped Odetics raised $16 million in a promissory note that was secured by the property last summer. Odetics declined to reveal how much cash it would gain through the sale, but because of the property’s proximity to Disneyland, it could fetch upward of $24 million, according to real estate sources.
Odetics, which forms and spins off businesses, has been in triage in the past year. To help shore up costs, Odetics sold its Gyyr Inc. subsidiary and closed its Mariner Networks Inc. subsidiary. Odetics losses have narrowed to $2.3 million in the most recently reported quarter vs. $16.7 million a year ago.
,Andrew Simons
