February 20, 2002--The company has enlisted Salomon Smith Barney to explore the alternatives for its Connectivity Solutions Unit.
Avaya Inc. (www.avaya.com) recently announced that it has engaged Salomon Smith Barney to explore alternatives for its Connectivity Solutions Unit, including possibly selling the unit. At the same time, Avaya announced it had finalized terms of amended credit facilities with its lenders.
"By exploring our options for Connectivity Solutions, our goal is to maximize our core business both by enhancing liquidity and by tightening our focus on the higher-growth opportunities for our business," said Garry K. McGuire, Avaya's chief financial officer. The Connectivity Solutions unit provides cabling for premises and campus environments, and for telecommunications carriers' central offices. The Connectivity Solutions unit also makes electronic cabinets.
Reuters reported that the Connectivity Solutions unit employs approximately 2,400 people-about 11% of Avaya's total work force of 22,500. Reuters also said that the cabling business posted sales of $135 million in its fiscal first quarter-about 10% of the total $1.3 billion.
