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ADT Plans to Sell U.S. Auto Auction Business

November 07, 1996|Times Staff and Wire Reports

ADT Ltd. plans to sell its vehicle auction unit, ADT Automotive, which Republic Industries Inc. had sought to acquire in its failed bid for the company. The move comes as ADT reported a drop its third-quarter profit. It said it's selling the unit to focus on its biggest business, electronic security. ADT Automotive is the No. 2 chain of auction houses in the U.S., with operating income for the 12 months ended Sept. 30 of $41.4 million on sales of $286.8 million. No potential buyers were named, and it wasn't clear if Republic, controlled by billionaire H. Wayne Huizenga, would make a bid. Republic originally offered $4 billion for all of ADT, seeking to bolster its own security business and provide a steady supply of automobiles to its fledgling used-car-superstore subsidiary. The acquisition plan collapsed in September when the two sides couldn't agree on a final price. ADT shares gained 12.5 cents to close at $19.375 on the New York Stock Exchange.

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