02 Mar Renaissance Learning sells unprofitable subsidiary
Renaissance Learning Inc., a provider of education products in Wisconsin Rapids, has sold Generation21 Learning Systems LLC to the subsidiary’s president, John Stearns.
Generation21 lost $4.6 million before taxes on $2.6 million in sales in 2004. Renaissance Learning said it had looked for strategic alternatives over the past few years and decided the sale to Stearns was its best option.
The company will record a $600,000 gain for the sale, including a $1 million one-time tax benefit. Stearns will make a small cash payment up front and additional payments contingent on Generation21’s sales through 2011.