The deal consists of $2.65 million on a three year interest bearing term loan, a potential earn out of one million dollars over five years and $8.35 million paid at closing. The proceeds were used to pay down the company's working line with Fleet Bank.

The company, which designs and manufactures flexible interconnect products, also secured a new $10 million working capital line of credit agreement with Silicon Valley Bank. The two-year line of credit agreement replaces the Fleet Bank loan and is intended to provide the working capital necessary for projected growth through fiscal year 2005.

Jon Kosheff, Parlex CFO tells GlobeSt.com that the Methuen facility is 172,000 sf while the Rhode Island facility is 55,000 sf. The company also has facilities in China, Mexico, California and the United Kingdom.

"The sale of property allows Parlex to focus its resources on our core business as we transition back to profitability," Peter J. Murphy, Parlex president and CEO notes. "While we have had a long and supportive relationship with Fleet Bank, we believe the retirement of that debt coupled with our new line of credit with Silicon Valley Bank will allow us to place all of our energy addressing the operational opportunities that will significantly improve financial performance."