1 August 2012
TT electronics plc
(the "Group")
Disposal of Dale Power Solutions Limited
TT electronics plc, a global provider of performance critical technology solutions to leading manufacturers, announces the sale of Dale Power Solutions Limited ("Dale"), part of the Secure Power division, to LDC a mid-market private equity house. Dale, based in the UK, provides bespoke secure power solutions and has a strong presence in the Middle East and certain other markets overseas.
The total consideration for the sale is £10.0m in cash. This includes settlement of intercompany debt of £4.7m and is subject to an adjustment based on the balance sheet at completion. The proceeds from the disposal will be used for general corporate purposes.
For the year ended 31 December 2011, Dale made £1.8m of adjusted* profit before tax on revenue of £30.8m and the value of gross assets at 31 December 2011 was £23.7m.
The transaction has no material impact on the Group's business.
Commenting on the disposal, Group Chief Executive, Geraint Anderson said:
"The sale of Dale, following the successful conclusion of the disposal process for our General Industrial division last year, is a further step in our strategy to realise value from businesses that are non-core. It increases the focus on our electronics divisions supplying leading manufacturers in the defence, aerospace, medical, transportation and industrial markets."
*The statutory profit before tax of Dale for the year ended 31 December 2011 was £3.2m. This included the receipt of commissions of £1.4m from other Group companies under an agreement which ended in February 2012 and consequently the underlying operating profit before tax of Dale was £1.8m.
Enquiries:
TT electronics plc Geraint Anderson, Group Chief Executive Shatish Dasani, Group Finance Director |
Tel: 01932 825300 |
Hudson Sandler Tel: 020 7796 4133
Andrew Hayes / Andrew Leach / Wendy Baker
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