4.    ASSETS HELD FOR SALE / DISCONTINUED OPERATIONS

On May 2, 2025, the Board approved and on May 20, 2025, the Company announced it had entered into a definitive agreement to sell VACCO Industries (VACCO) to RBC Bearings Incorporated (RBC), an international manufacturer and marketer of highly engineered precision bearings and products, headquartered in Oxford, Connecticut. Subsequent to June 30, 2025, the Company announced it had completed this divestiture on July 18, 2025. Net proceeds from the transaction were approximately $275 million reflecting customary working capital adjustments attributable to operating activities since the time of the transaction announcement on May 20, 2025. VACCO’s assets and liabilities constitute a disposal group to be classified as held for sale and VACCO constitutes a component of the Company with operations and cash flows that are clearly distinguishable, operationally and for financial reporting purposes. Results of operations, financial position and cash flows for the VACCO business are reflected as discontinued operations and/or assets held for sale in the Condensed Consolidated Financial Statements and related notes for all periods presented. The sale of VACCO represents a strategic shift for the Company to exit the Space business.

Net sales from the VACCO business were $30.3 million and $96.4 million for the three and nine-month periods ending June 30, 2025 and $27.2 million and $82.6 million for the respective prior year periods. Pretax earnings from the VACCO business were $1.9 million and $12.1 million for the three and nine-month periods ending June 30, 2025 and $1.2 million and $5.5 million for the respective prior year periods. The net proceeds from the sale of approximately $275 million and the related gain on sale will be recorded in the fourth quarter of 2025.

The major classes of VACCO’s assets and liabilities held for sale included in the Condensed Consolidated Balance Sheet at June 30, 2025 and September 30, 2024 are shown below (in thousands).

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