Disposal
Spirent PLC
10 September 2001
SPIRENT AGREES SALE OF SENSING SOLUTIONS GROUP
Spirent plc, the international network technology company, announces that it
has entered into an agreement for the sale of the equity and assets of its
Sensing Solutions group, and certain related receivables, to a company formed
by GE Industrial Systems, a division of General Electric Company of the
United States, for a cash consideration of $220 million (£152 million
approx.).
The transaction, which is expected to complete by the end of November, is
subject to certain conditions including regulatory approvals. The net
proceeds of the sale, after deduction of taxation and costs, will be used by
Spirent for general corporate purposes including the reduction of debt.
The sale is a further step in Spirent's increasing focus on communications
related activities. Under the terms of the deal, all of the approximately
2,000 employees in the Sensing Solutions group will transfer with the
business.
The Sensing Solutions group comprises three principal divisions:
* Temperature division: Thermometrics, a global provider of temperature
measurement and sensing solutions principally in the automotive and
medical sectors;
* Humidity division: including General Eastern Instruments, which provides
a broad range of products for the measurement of humidity and pressure to
a wide range of markets;
* Pharmaceutical division: Kaye Instruments, a supplier of products and
services for thermal calibration, validation and monitoring, primarily in
medical device sterilisation and pharmaceutical production.
Combined Sensing Solutions revenues for the year to 31 December 2000 were
£90.7 million, and for the six months to 30 June 2001 were £46.6 million. In
the financial year ended 31 December 2000, the operating profit for the
combined Sensing Solutions businesses totalled £11.3 million. Operating
profit for the half year to 30 June 2001 was £4.6 million.
At 30 June 2001, the book value of the net assets to be disposed of was £59.6
million, with related goodwill previously written off on acquisition of £64.8
million.
Nicholas Brookes, Chief Executive of Spirent, commented:
'The divestment of our Sensing Solutions businesses is the next step in our
strategy to focus on communications activities to serve the long term growth
in the telecommunications industry. We believe that the Sensing Solutions
business faces a promising future under its new owners who can provide strong
manufacturing and marketing resources to achieve its potential.'
Enquiries:
Nicholas Brookes, Chief Executive Spirent plc +44 (0)1293 767676
Eric Hutchinson, Finance Director
Jon Coles/Rupert Young Brunswick (London) +44 (0)20 7404 5959
Sara Strong/Nina Pawlak Brunswick (New York) +1 212 333 3810
Brian Magnus/Alexander Phillips Morgan Stanley +44 (0) 20 7425 5000
Background note:
About Spirent
Spirent plc is an international network technology company providing state-of-
the-art solutions with a focus on high growth, high margin activities. Our
communications group unites leading edge performance analysis technology with
network operations expertise, enabling customers to accelerate the
development, deployment and assurance of next generation network equipment
and services worldwide. Further information about Spirent plc can be found
at www.spirent.com
Spirent plc is listed on the London Stock Exchange (ticker: SPT) and on the
New York Stock Exchange (ticker: SPM; CUSIP number: 84856M209) with one
American Depositary Receipt representing four ordinary shares.
Spirent and the Spirent logo are trademarks of Spirent plc. All rights
reserved.
About GE Industrial Systems
GE Industrial Systems is a global leader in manufacturing products used to
distribute, protect and control electrical power and equipment, and supplying
product and service solutions for commercial, industrial, residential and
utility applications. GE Industrial Systems is one of GE's major businesses.
GE is the world's largest diversified technology, manufacturing and services
company with a commitment to achieving worldwide leadership. For more
information visit the website at www.Geindustrial.com
This press release contains forward-looking statements that are based on
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You can identify these statements by their use of words such as 'will',
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differ materially from those expressed or implied by these statements. Such
factors include: aggressive competition; our ability to develop and
commercialise new products and services; risks relating to the acquisition or
sale of businesses; our reliance on third party manufacturers and suppliers;
our exposure to liabilities for product defects; our reliance on proprietary
technology; our ability to grow in e-commerce; our ability to attract and
retain qualified personnel; risks of doing business internationally; and
risks of downturns in the high technology industries in which we participate;
and other risks described from time to time in Spirent plc's Securities and
Exchange Commission periodic reports and filings. We undertake no obligation
to update our forward-looking statements, whether as a result of new
information, future events or otherwise.