TT electronics PLC
10 March 2005
TT electronics plc
Important expansion into China
TT electronics plc, a world leader in resistor and sensor technology, announces
that it has expanded its activities in China through the acquisition of Dage
Limited ('DBS'), an operating division of Dage Holdings Limited and the holding
company of Dage Backplane Systems Limited, an electronic manufacturing services
business with facilities in Suzhou, near Shanghai.
TT electronics has acquired the entire issued share capital of DBS for a cash
consideration of £8.0 million, subject to completion accounts, for net assets of
£4.9 million as at 30 April 2004. In the year ended 30 April 2004, on a turnover
of £19.3m, DBS's profits before tax were £1.2 million. DBS has been acquired
debt free and the acquisition will be earnings enhancing in the current year.
DBS is a well established contract electronics manufacturer serving a blue chip
client base. The company has manufacturing facilities in Aylesbury in the UK and
in Suzhou, China.
The acquisition of DBS expands our existing electronic manufacturing services
business and provides us with the facilities in China to meet the requirements
of our major OEM customers, particularly within the automotive industry. Furthe
rmore, as part of the TT electronics group, DBS's business will benefit from
enhanced access to the European and North American markets.
Commenting on the acquisition, Executive Chairman of TT electronics, John Newman
said,
'We are delighted to welcome DBS into the group. While we have been
manufacturing in China through subcontracting arrangements, acquiring our own
manufacturing facility represents a significant opportunity for TT electronics
to expand its electronic components business in this increasingly important
market.'
For further information please contact:
TT electronics plc
John Newman, Executive Chairman: Tel: 01932 856 647
Biddicks
Zoe Biddick: Tel: 020 7448 1000
This information is provided by RNS
The company news service from the London Stock Exchange
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