Webco Industries Inc has sold the assets of its QuikWater Division, a manufacturer of direct-contact water heaters.
Under terms of the sale, the purchaser, QuikWater Systems Inc (QWS), will pay Webco $100,000 and assume certain liabilities, in exchange for certain tangible and all intangible assets of QuikWater. In addition, Webco will have the right to receive up to $300,000 in additional payments if QWS attains specified operating results. In its fiscal third quarter ended April 30, 2002, Webco will take an estimated after-tax charge of $775,000 related to QuikWater, of which $635,000 will represent a loss on disposal of the segment.