Boca Raton, Fla.— Questron Technology, Inc. signed a purchase agreement with QTI Acquisition Corp., a newly formed affiliate of Sun Capital Partners, Inc.

Questron, a distributor and provider of supply chain management solutions with a strong presence in the aerospace industry, ranked 56th in the 2001 Industrial Distribution Top 100 report, which is determined by annual U.S. sales data. In early February, the company filed for protection under Chapter 11 of the U.S. Bankruptcy Code for the District of Delaware. The sale of Questron's assets is subject to bankruptcy court approval.

The Nasdaq Stock MarketSM halted trading of Questron stock in February. After trading at a 52-week high of 4.54, the stock held at .22 when trading was halted.

Questron CEO Dominic A. Polimeni said in a recent statement that he expects customer service to remain uninterrupted and that the company has sufficient cash on hand to meet its employee obligations and operating expenses while the bankruptcy court reviews the proposed sale.

Under the terms of the agreement, QTI agreed to assume approximately $81.5 million in outstanding debt under Questron's senior secured debt facility, assume customer contracts, continue to employ Questron's management and employees with comparable benefits, and certain other liabilities. The price payable by QTI is not expected to cover all of Questron's debt, so stockholders won't receive any funds upon completion of the proceedings.

Sun Capital, which specializes in turn-arounds, under-performers and leverage situations, was attracted to Questron because it is well positioned in a strong niche, said vice president M. Steven Liff.

"Questron has a strong position in the industry," said Liff. "We think prospects for both Questron's business and the industry are strong."

Liff said the company will evaluate the current talent pool and supplement it where necessary. However, he said he is comfortable with the operators of the various business units. Questron fell victim to the economic climate in 2001, he added.

"The company was in growth mode and had made some acquisitions, causing it to accumulate debt," said Liff. "When this was done the company had sufficient cash flow, but the cycle hit hard and caused increasing debt."

He points out that Questron, while diversified, nonetheless has substantial business in the aerospace, technology and telecommunications industries, which were down even before September 11 and have not recovered since. There won't be substantial changes from a customer or services standpoint, said Liff.

"What will change is that the company will be well capitalized and much more liquid," said Liff. "Rather than supporting a heavy debt load, it can continue to meet its demands while investing in the business and supporting sustained growth."