February 10, 2010 (FinancialWire) — Industrial services provider Miscor Group, Ltd. (OTCBB: MIGL) has sold its Martell Electric, LLC and Ideal Consolidated, Inc. business units as part of a restructuring plan.

The two business units, part of the company’s Construction Services segment, were sold for $3.5 million to John Martell, president and CEO of Miscor and his wife Bonnie Martell.

The consideration for the transaction comprised $750,000 in cash and a reduction by $2.75 million of a $3 million note that was owed to Martell by Miscor. The financial terms of the transaction, which closed on February 3, were supported by an independent fairness opinion provided to the company’s board of directors by Western Reserve Partners, LLC of Cleveland.

Upon completion of the plan, Miscor said its remaining subsidiaries will be aligned with the company’s refocused business strategy, which includes an emphasis on maintenance, repair, remanufacturing and manufacturing of mechanical and electrical equipment for customers in the industrial and utility industries. Martell will remain in his role of president of the two divested companies, and in the interim, will also remain with Miscor to assist the company in completing its transition to a new CEO.

Miscor said it is beginning the search process for a new CEO, and once the process is complete, Martell will step down as CEO but maintain an active role in the company as non-executive chairman of the board.

The company also plans to relocate its headquarters from South Bend, Indiana to Massillon, Ohio, the main location of its Magnetech Industrial Services, Inc. unit.

Miscor Group provides electrical and mechanical solutions to industrial, commercial and institutional customers through two segments: Industrial Services, consisting of the company’s maintenance and repair services to several industries and remanufacturing industrial lifting magnets for the steel and scrap industries; and Rail services, consisting of the company’s manufacturing and rebuilding of power assemblies, engine parts, and other components related to large diesel engines and its locomotive maintenance, remanufacturing, and repair services for the rail industry.

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