Silvercrest Industries to Sell Its Lumber Subsidiary

Silvercrest Industries said Friday that it has agreed to sell the assets of its lumber subsidiary to Eadington Cos. in Fullerton for $3.1 million.

Silvercrest, a Santa Ana-based manufacturer of mobile and modular homes, said it will receive $1 million in cash plus a $1-million, 5-year note. And Eadington, a private holding company whose operations include a fruit business, will assume the subsidiary’s $1.1 million in debt.

The lumber subsidiary, a maker of building materials and roofing trusses, had revenues of about $13 million for fiscal 1987, which ended last June 30. But the unit failed to produce sufficient earnings, Silvercrest President Richard Simonian said in a prepared statement.

Simonian said the investment in the subsidiary can be put to better use in Silvercrest’s core businesses.

Reported Revenues

Silvercrest reported revenues of $36.1 million for the first six months of fiscal 1988, compared to $31.5 million in the year-earlier period. Earnings for the first half of the year totaled $603,000, compared to $1 million in the same period a year ago.

Silvercrest stock, which trades on the American Stock Exchange, closed at $2.875 Friday, down 12.5 cents for the day. The company has 3.3 million shares outstanding, giving it a market value of $9.6 million.