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Remec sell-off of units continues; Del Mar firm liquidating assets, though end is vague.

Article Excerpt
Sales and mergers are common, but the selling of an entire company in pieces and then distributing profits to shareholders is a rare occurrence.

Del Mar-based Remec Inc. is doing just that, having completed the first stage May 20 when it officially transferred ownership of its defense and space unit to Chelton Microwave, a wholly owned subsidiary of Cobham, Plc., a publicly traded British aerospace and defense company with more than $1.5 billion in sales and about 8,000 employees.

Remec has pursued a liquidation path after years of losing money, primarily in its wireless systems unit, which it launched in the mid-1990s to diversify its revenues from its core business of defense contracting.

Founded in 1983, Remec makes microwave equipment used in communications networks. It is a subcontractor to the nation's largest prime defense companies, including Northrop Grumman, Boeing, and Lockheed Martin.

The foray into commercial wireless proved to be a financial drain and ultimately led to the company's decision to liquidate, said Mark Jordan, vice president for A.G. Edwards & Son, a St. Louis-based brokerage.

"In hindsight, had they stuck to their knitting and didn't...

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