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Chatsworth’s MRV Communications to sell Swiss subsidiary for $24.6 million

Chatsworth-based MRV Communications Inc. has agreed to sell a Swiss subsidiary for about $24.6 million to a group of European private equity firms, the company announced Wednesday. The announcement came one day after the Chatsworth company announced its CEO Dilip Singh has stepped down “in order to pursue other interests.” CFO Chris King will take over as interim chief executive and maintain his post as chief financial officer, the company said Tuesday. The Valley carrier Ethernet provider said it has executed a definite agreement to sell its wholly-owned subsidiary, Geneva-based Creative Electronic Systems SA to a group of investors led by the Swiss equity firm Vinci Capital SA. Creative Electronic Systems designs and manufactures complex high-performance avionics, defense and communications boards and more. MRV reported $62.45 million in revenue during the third quarter, down from $66.12 million in 2010. Net income was $2.08 million, down from $3.57 million in the third quarter of 2010. In the first nine months of 2011, the company has recorded a $329,000 net loss due to its sale of TurnKey, another Swiss subsidiary. If the sale of Creative Electronics is completed, King said it will “increase the cash available for return to our stockholders. “We believe that we achieved an attractive sale price for CES, and that CES will continue to grow under the stewardship of its new owners,” King said in a statement.

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