Finland-based Glaston Corp. announced today it has signed an agreement to sell 100 percent of the shares of Glaston Italy S.p.A to the subsidiary’s local management.

“Glaston has a clear strategy and direction, which is sustainable and profitable growth,” says Glaston president and CEO Arto Metsänen. “The company’s expertise is strongest in heat treatment technology. We have successfully developed this segment by launching machines which represent the most advanced technology and which have clearly fulfilled customers’ needs. The agreement signed today means that we can in the future focus all of our resources on areas where we are already strong in terms of both expertise and profitability.”

The sale is expected to be finalized by the end of June 2015. Once final, Glaston will incur non-recurring losses estimated at $9.93 million (EUR 9 million), of which an estimated $7.72 million (EUR 7 million) will consist of impairment of goodwill, according to a company release.

“This item will have no impact on cash flow,” the release reads. “Impairments arising from the sale will have a negative impact on the parent company’s distributable funds but will not, however, jeopardize the company’s capacity for normal distribution of funds. The sale of pre-processing operations will improve Glaston’s relative profitability and therefore support the company’s strategic objectives. The above assessments of the impact of the sale will be revised in connection with the finalization of sale.”

Glaston acquired the Italian company Z. Bavelloni Immobiliare S.p.A., which specialized in pre-processing operations, in 2003.

Pre-processing operations include the manufacturing and servicing of glass pre-processing machines. According to the company, pre-processing machines are reported as part of its “machines” segment, and the servicing as part of its “services” segment. The sale and manufacturing of tools related to pre-processing operations will remain in in the company, and Glaston will continue to distribute and service pre-processing machines in certain areas.