HAUPPAUGE, NY - Jaco Electronics announced today an agreement in principle to sell to certain assets of its components distribution business to WPG Americas Inc., a subsidiary of World Peace Industrial Group. The transaction is subject to customary closing conditions and is expected to close within the next 30 days.

During a transition period, Jaco will provide support to its vendors and customers and to WPG with respect to logistics and enterprise resource and planning.

Jaco will now focus on flat panel displays and valued-added services.

Jaco chairman, president and CEO Joel Girsky said, “The electronic components business has been transitioning to Asia. As a result, we have decided to shift our strategy and focus on Jaco’s core competency -- displays and embedded computing. In WPG we have found a suitor that is committed to growing our North American component business."