Ronson Corporation announced October 15 that it has entered into a definitive agreement with Zippo Manufacturing Company to sell to Zippo substantially all of the assets of its Consumer Products companies, Ronson Consumer Products Corporation in Woodbridge, N.J., and Ronson Corporation of Canada Ltd. in Mississauga, Ontario, both wholly-owned subsidiaries of Ronson Corporation.
The agreement provides for a purchase price, payable in cash at closing, of $11.1 million, subject to various adjustments, $1.350 million of which is to be held in escrow to secure the company's indemnification obligations for a period of 12 months and longer in specified events. The consummation of the transaction is subject to, among other things, approval by Ronson Corporation's shareholders, receipt of required third-party consents and various other customary conditions. Closing is expected to occur in the fourth quarter of this year.