Elektron Technology PLC Disposal of Sheen Instruments (1387U)
20 October 2017 - 5:00PM
UK Regulatory
TIDMEKT
RNS Number : 1387U
Elektron Technology PLC
20 October 2017
20 October 2017
Elektron Technology plc
("Elektron" or the "Company")
Sale of Sheen Instruments Limited
Elektron Technology plc (AIM:EKT, "Elektron" or the "Group"),
the global technology group, has completed the sale of its wholly
owned subsidiary, Sheen Instruments Limited ("Sheen"), to
Industrial Physics Inc. The transaction was executed through
Industrial Physics' Dutch subsidiary, Büchel B.V., for a total
gross consideration of approximately GBP1.2 million cash of which
GBP1.1 million was received on completion and approximately GBP0.1
million is due in October 2018 subject to any adjustment for
unforeseen liabilities. Industrial Physics is a platform company of
Union Park Capital, a US-based private equity firm specializing in
industrial technology.
Sheen is a leading manufacturer and supplier of inspection and
testing instruments used in the paint, coating, automotive and
other industries.
In the year ended 31 January 2017 the sales of Sheen were GBP2.6
million and 'Brand Contribution' was GBP0.2 million. Brand
Contribution is an internal measure of profitability before the
allocation of certain Group pooled costs such as finance,
information technology and human resources. After making a
deduction for a fair share of these costs the Board estimates
Sheen's operating profit to be GBP0.1m million for the year ended
31 January 2017.
The cash proceeds will be used by Elektron for working capital
purposes. The disposal will be dilutive of earnings initially but
the Board expects to improve the performance of the remaining
businesses.
The disposal is part of the Group's rationalisation of its
portfolio, further focusing its investment on its remaining
businesses namely Bulgin, Checkit, Elektron Eye Technology and
Queensgate.
Enquiries:
Elektron Technology plc +44 (0) 1223
www.elektron-technology.com 371 000
Keith Daley - Chairman
Andy Weatherstone - Chief Financial
Officer & Company Secretary
+44 (0)20
finnCap (Nominated Adviser & Broker) 7220 0500
Ed Frisby / Scott Mathieson -
Corporate Finance
Abigail Wayne - Corporate Broking
Notes to Editors
Elektron conceives designs and markets innovative engineered
products and services for businesses that connect, monitor and
control. We have a multi skilled team of engineers, software and
product line specialists based in Cambridge focused on the
opportunities created by global trends in the following areas:
- Demand for ubiquitous power and data: Bulgin
- New waves of "aware" business applications: Checkit
- The effect of ageing on sight: Elektron Eye Technology
- Growth in high precision manufacture: Queensgate
This information is provided by RNS
The company news service from the London Stock Exchange
END
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