A local electronics company, Western Electronics LLC, is now owned by its executives and board members. Its previous majority owner was DBSI, the commercial real estate investment company based in Meridian that fell apart, filed for bankruptcy and was accused of fraud.
Meridian-based Western Electronics is a contractor that makes electronics for companies that design the equipment but contract out manufacturing. It has about 150 employees, with one local plant and one outside of Denver.
It was majority-owned by DBSI and minority-owned by others, including former employees. But DBSI's majority interest was transferred to a liquidating trust during the DBSI bankruptcy. The undisclosed amount that Western Electronics executives and board members paid to have full ownership of the company went toward paying off DBSI's creditors.
"This will eliminate the uncertainty that was associated with our prior ownership and introduces Western Electronics to a new exciting chapter in our evolution," said Rob Subia, president and chief executive officer of Western Electronics, in a press release announcing the buyout.
Subia said the company's operations were not affected by the DBSI collapse. "We were a completely separate entity that just happened to have [an owner] who went through that," he said in an interview.
Western Electronics did not disclose the terms of the sale, which closed June 30. Subia declined to name the other owners less than a half-dozen people out of concern for their privacy.