Richardson Electronics: Buyback, Dividend and Acquisitions 'All Likely'

This week Richardson Electronics (RELL) announced the closing of the sale of its RF, Wireless and Power Division (RFPD) to Arrow Electronics (ARW) for $238.8 million in cash. The closing of this deal marks the end of the 5 month transaction process and leaves RELL with a pile of cash.

According to the Q2 FY2011 conference call on January 6th, the company will put about $210 million of the $238 million to the balance sheet after taxes and expenses. That brings the company?s total cash position to about $225 million, give or take a few million in working capital fluctuation. This gives the company $12.50 in cash per share and an enterprise value of about $10 million.

On the conference call the company left all options for this cash on the table. Edward Richardson, the company?s CEO, said a buyback, dividend and small ?bolt on? acquisitions were all likely.

So

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