Fortress International to sell Rubicon division

AP News
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Posted: Dec 22, 2009 2:22 PM

Construction consultant Fortress International Group Inc. said on Tuesday that it will sell its Rubicon Professional Services division for almost $1.9 million.

Fortress said it was selling Rubicon to an entity called Rubicon Acquisition Co. LLC. The sale is expected to close by the end of this year.

The deal calls for Rubicon Acquisition to pay $1 million in cash to Fortress, and assume payments of about $300,000 on a promissory note and bonus obligations. In addition, four months after the sale closes, Rubicon Acquisition will execute about $500,000 in promissory notes over the next 18 months at an interest rate of 4 percent.

Fortress said the sale will strengthen its balance sheet and cash position. It said the Rubicon division focused on project consulting, equipment and construction management services. Fortress said it would focus on consulting, designing, and managing projects "under longer term contract relationships where our revenues are not impacted as severely by capital spending."