Ronson Divests Itself of Aviation Division, Sells To Hawthorne

Ronson Corporation has agreed to sell (substantially) all of the assets of Ronson Aviation, Inc. -- a fixed-base operator at Trenton-Mercer Airport, providing aircraft fueling and servicing, avionics sales, aircraft repair and maintenance, hangar and office leasing and related services. The purchaser is Hawthorne TTN Holdings, Inc.

The purchase agreement provides for a purchase price, payable in cash at closing, of $9.5 million, $0.5 million of which would be held in escrow for a period of 15 months to secure the Company's indemnification obligations.

There are a number of conditions that could squash the deal, though. The purchaser may terminate the purchase agreement if it has not satisfactorily completed its due diligence review of Ronson Aviation within the period prescribed by the purchase agreement. In addition, the purchaser has the ability to terminate the purchase agreement in the event it has not obtained financing within a prescribed period. Closing under the agreement is further subject to approval of the transaction by the Company's shareholders, to the agreement of Mercer County to the transfer to the purchaser of the premises used for Ronson Aviation's fixed-base operation and to other customary closing conditions.

Ronson Corporation's operations include its wholly-owned subsidiaries: 1) Ronson Consumer Products Corporation in Woodbridge, New Jersey, and Ronson Corporation of Canada Ltd., and 2) Ronson Aviation, Inc., a fixed-base operation at Trenton-Mercer Airport, Trenton, New Jersey.

FMI: www.ronsoncorp.com