NEWARK, NY -- IEC Electronics today announced the sale of its money-losing Southern California Braiding Co. business to DCX-CHOL Enterprises for about $2.5 million.

The company had taken millions of dollars in charges during the past couple fiscal years related to losses at the division. IEC acquired the unit for $25 million in late 2010.

In a press statement, IEC president and CEO Jeffrey T. Schlarbaum said, "This divestiture is consistent with the company's strategy to enhance IEC's focus on our core business and vertical markets. SCB possesses distinguished capabilities, but absorbed disproportionate resources relative to its size and strategic importance to our overall business. The sale enables us to redirect our resources while having an immediate positive impact on the company's financial health.

"DCX is the perfect acquirer, providing our employees at SCB the opportunity to join an organization aligned with its business and also committed to its growth. We are fully committed to supporting the smooth transition for customers, employees and partners," he added.

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