Tandy's computer factories will now be sold to AST

Article Abstract:

Tandy Corp announces that AST Research Inc will buy its ailing computer manufacturing plants for about $170 million. Tandy also confirms that it has abandoned its announced plan to spin off TE Electronics Inc, its manufacturing subsidiary. The Tandy-AST agreement is the first step in Tandy's plan to auction off almost all the remaining units of TE. The company will just retain a profitable division that manufactures telephones, wires, cables and other products for its Radio Shack chain of electronic stores. With its deal with AST, Tandy is getting out of the volatile microcomputer business. AST, meanwhile, will emerge as the fifth-largest microcomputer manufacturer with a market share of more than 6 percent.

Contracts, Manufacturing, Acquisition, AST Research Inc.

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A Tandy spinoff born into turbulence: TE Electronics will soon go public, amid price wars and losses

Article Abstract:

Tandy Corp will spin off its manufacturing unit, TE Electronics Inc, by the beginning of Jul 1993. The timing of the divestment is unfortunate: though TE earned $1.5 billion in sales in 1992 and is relatively debt-free, the price wars and instability of the computer market will not allow it to earn profits immediately. In the last six months of 1992, TE lost $9 million. Two of its biggest customers, DEC and Panasonic, cancelled their contracts, leaving TE with a $16.2 million loss on sales of $326.5 million for the 1st qtr 1993. TE's products include the under-$2,000 Sensation multimedia machine and the $2,500 Grid Convertible notebook computer that is able to interpret handwritten messages.

Office furniture, except wood, TAN, Spinoffs (Corporate), Manufacturers, Spinoff Company, TE Electronics Inc.

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