Acquisition

RNS Number : 7803B

TT electronics PLC

21 August 2008

 



TT electronics plc 

Acquisition 

TT electronics plc, a world leader in sensor and electronic component technology, is pleased to announce that it has acquired assets comprising the majority of the business of Semelab Ltd. The acquired business ('Semelab') designs and produces specialised radio frequency and power semiconductors, optoelectronic components and power microcircuits and modules, primarily for the UK and European markets.  

The purchase consideration is £9.8 million, subject to an adjustment based upon the debt free, net assets delivered at completion, which are expected to be approximately £6.2 million. For the year to 31 October 2008, operating profits attributable to the acquired business are expected to be approximately £1 million. The consideration is payable in cash and will be funded from the group's existing debt facilities. The current management team will remain with Semelab.

Semelab represents an excellent addition to the group's electronic component activities, supporting TT electronics' strategy to focus on selling niche electronic components to higher margin end markets, including the military, aerospace and medical sectors. In particular:

• the acquisition will broaden TT electronics' product range in the specialty radio frequency, power semiconductor and optoelectronic sectors;

• the acquisition will expand TT electronics' presence in the UK and Europe, bringing new customers and increasing the group's sales to important existing military and aerospace customers;

• Semelab is expected to benefit from TT electronics' global customer base and sales presence, providing resources to expand in North America, Asia and mainland Europe; and

• it is expected that future joint R&D efforts for new products will reduce time-to-market and provide technical advantages to both TT electronics and Semelab.
  

Commenting on the acquisition, Geraint Anderson, Chief Executive of TT electronics, said:

'We are delighted with this acquisition which represents an attractive addition to complement our existing component operations. The acquisition significantly strengthens our position in the key military and aerospace markets with major customers in the UK and Europe.  

We are acquiring a profitable business which will benefit from the group's global sales network and our technical capabilities. We expect this to enhance profitable revenue growth for Semelab within TT electronics.'

Enquiries:
TT electronics plc
Geraint Anderson, Chief Executive		Tel: [phone]
Biddicks
Zoë Biddick		Tel: [phone]

 

END

 

 

ACQEAKPFALNPEEE