Black & Decker to spin off PRC division

March 12, 1992

Black & Decker Corp. plans to spin off PRC, its Virginia-based information systems and services business, in a public stock offering, the company said today. That move, combined with the planned sale of an additional 18 million shares of Black & Decker stock, would net from $331 million to $363 million, it said.

Towson-based Black & Decker said it would use the money to reduce debt.

Black & Decker acquired PRC, which is based in McLean, Va., as part of the 1989 takeover of Connecticut-based Emhart Corp.

Black & Decker tried to sell PRC and other non-hardware divisions of Emhart to reduce its debt following the takeover. Black & Decker offered PRC for sale for $600 million in 1989.

But the cooling of tensions between world superpowers reduced the market for defense contractors such as PRC.

PRC had $700 million in revenues and 3,500 workers in 1990.

The offering of the common stock of PRC Advanced Systems Inc., will be made domestically through an underwriting group to be formed by First Boston Corp., Alex. Brown & Sons Inc., and Lehman Brothers Inc.

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