Gaming supplier sells plant, subsidiary

Wednesday, Oct. 23, 2002 | 11:09 a.m.

Mikohn Gaming Corp. today said it sold its Las Vegas plant and its Latin American subsidiary to complete its restructuring and a cost-cutting initiative.

The Las Vegas-based gaming supplier said its 50 percent interest in the Latin American sales and distribution office in Lima, Peru, was sold to a group headed by that division's general manager, Oscar Rodriguez. Mikohn recently sold off its exterior sign business, based in Las Vegas, in a similar manner. Terms of the latest sale were not disclosed.

The sale of the Las Vegas plant, which became vacant after Mikohn moved its interior sign manufacturing operation to Hurricane, Utah, is expected to close Oct. 31. Mikohn expects to net $1.8 million from the sale. The buyer of the building was not disclosed.

The company expects to net $4 million through the restructuring. It also said it reiterates a target year-end cash balance of $15 million and expects to generate $9.6 million of free cash flow.

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