MELVILLE, NEW YORK -- Park Electrochemical has entered into a definitive agreement to sell its electronics business to AGC Inc., formerly Asahi Glass for $145 million in cash.

The transaction is expected to close in Park's third fiscal quarter ending Nov. 25, subject to customary closing conditions and regulatory approvals.

Park's Electronics Business develops and manufactures digital and RF/microwave printed circuit materials principally for the telecommunications and internet infrastructure, enterprise and military/aerospace markets, and includes manufacturing facilities in Singapore, France, Arizona and California and R&D facilities in Arizona and Singapore.

Tokyo-based AGC is the parent company of the AGC Group, a world-leading glass solution provider and supplier of flat, automotive and display glass, chemicals, ceramics and other high-tech materials and components. AGC Group employs approximately 50,000 people worldwide and generates annual sales of approximately $13.3 billion.

The deal brings to a close a decision set in motion in January, when Park initiated a strategic evaluation of its electronics business. The electronics business was founded in 1961, when Park's Jerry Shore and Tony Chiesa bought a Connecticut firm called New England Laminates Co. (Nelco) out of bankruptcy.

"Legend has it that Park paid $200,000" for Nelco, Brian Shore, chairman and CEO, Park, said in a statement. "Our electronics business was blessed with auspicious beginnings and was grown and enhanced from the start with much innovation and inspiration, as money was not a readily available commodity for Park in those early days." He said the company supposedly developed the world's first multilayer circuit board in 1962 for a large OEM which needed to "take weight out" of ICBM rockets.

"Our electronics business was built from nothing to what it is today by being true to Park's key principles of integrity and humility and by hard work and especially by perseverance in the face of adversity. Over the last 57 years, there were a number of times when our electronics business was counted out and forgotten as irrelevant. But we never gave in to self-doubt or gave up."

"Based on extensive engagement with AGC over the last two months, we have come to strongly believe that AGC is a decent and honorable company and a company of great integrity, which are essential traits for a potential new owner. We also believe AGC is a company which understands the value of hard work, perseverance, dedication and unwavering commitment to its objectives and which is willing to sacrifice for the fundamental and long term good of its business, its employees and society."

Park will retain its aerospace business following the close of the deal.

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