Axsys Technologies Inc. (USA) announced the long-awaited sale of its AST Bearings division (also known as the Distributed Products division).

The buyer is a Minnesota-based private equity investment firm, Tonka Bay Equity Partners. AST is Tonka Bay's seventh platform acquisition in the current fund and its fourth in this quarter alone.

Tonka Bay paid approximately $15.5 million cash for AST.

Axsys put AST up for sale several months ago after deciding to reorganize as an optics-focused business, and to raise some much-needed cash. Since then, rumors about various potential buyers have come and gone with no offers confirmed.

article: AXYS looks to sell off AST Bearings
Founded in 1964, AST became part of the precision electrical component manufacturer, Vernitron Corp., which started business in 1959. Vernitron was renamed Axsys in 1997.

AST supplies precision ball bearings and other bearings -- rod end, bushings, roller bearings, linear bearings -- to OEM and replacement markets in North America and for export. Clients are primarily in precision motion control, such as military, aerospace and electronic equipment. AST also works with customers to develop and produce proprietary bearings. The company has two locations: Montville, New Jersey; and Irvine, California.

AST's unique technical resources include a precision relubrication service and the ability to provide custom engineering design for specialty applications and integrated components.

Axsys said previously that it expects AST Bearings to record 2007 sales of approximately $29 million and see net income of approximately $1.5 million (5.1% of sales).

In third quarter 2007, AST turned in net income of approximately $400,000, doubling third quarter 2006's estimated $200,000 net.

Cary Musech, Managing Principal of Tonka Bay and a member of the AST Board, said: "We are excited to partner with the strong and experienced management team at AST. As an independent company, AST will be able to invest in organic growth and pursue strategic acquisitions to achieve product line and geographic expansion."

AST Board member and Tonka Bay Principal Steve Soderling added: "AST has strong, defensible niche in the bearings marketplace. They have a leading market position and are positioned for continued growth due to their deep relationships with customers and suppliers."

Dale Kaminski, AST's CEO, stated: "Tonka Bay’s resources and industrial marketplace experience will be very useful as we pursue our strategic initiatives, including expanding our product line offering and making add-on acquisitions to complement our core business."

AST's management team will stay in place, and Tonka Bay will continue to operate AST under its current name and brand, as AST Bearings, LLC.