TT Electronics PLC Acquisition (1135Q)
04 June 2018 - 4:00PM
UK Regulatory
TIDMTTG
RNS Number : 1135Q
TT Electronics PLC
04 June 2018
4 June 2018
TT Electronics plc
Acquisition of Precision Inc.
This announcement contains inside information
TT Electronics ("TT" or the "Group"), a global provider of
engineered electronics for performance critical applications, today
announces the acquisition of Precision Inc. ("Precision") for an
initial consideration of $23.5 million and up to an additional $4.0
million which may become payable subject to business
performance.
Headquartered in Minneapolis, US, Precision is an industry
leading designer and manufacturer of precision electromagnetic
product solutions for critical applications. Precision has
customers in medical, industrial and aerospace and defence markets,
served by around 160 employees in the US and China.
Precision brings new design, simulation and manufacturing
capabilities to TT in electromagnetics, one of our focus areas for
growth. Precision's products are primarily sold into medical
applications including pace makers, neurological implants and other
in-body equipment as well as external diagnostic equipment such as
dialysis machines and MRI scanners. Precision also serves
industrial and aerospace and defence customers in applications
including satellite power supplies and aerospace guidance systems.
Precision's capabilities include high-reliability, ultra-fine wire
winding, particularly suited to components that require
exceptionally high levels of precision. Precision will be
integrated into the Power Electronics division.
In the year ended 31 December 2017, Precision reported revenues
of $21.0 million and EBIT of $2.3 million. Gross assets were
approximately $7.8 million as at 31 December 2017. The acquisition
is expected to be immediately earnings enhancing, to generate
mid-teens operating margins, and to exceed our 12% return on
invested capital acquisition hurdle rate in the first full
financial year of ownership.
Commenting on the acquisition, Richard Tyson, Chief Executive
Officer said:
"The acquisition of Precision is the second acquisition since we
transformed the Group with the sale of the Transportation division
in 2017. The acquisition of Precision is an excellent fit with both
our business and our strategy for growth and higher margins. It has
a strong position in markets where the proliferation of electronics
is increasingly important and will extend our capability for power
electronic solutions in the important medical, industrial and
aerospace and defence markets in the US. We remain committed to
creating value for our shareholders and we expect to hit our
financial return hurdle rate in the first full year.
I am delighted to welcome Precision's employees to TT as we
continue to build differentiated capabilities and engineer smarter
solutions together with our customers."
For further information please
contact:
TT Electronics plc Tel: +44 (0)1932 825 300
Richard Tyson, Chief Executive Officer
Mark Hoad, Chief Financial Officer
Emma Darke, Head of Investor Relations and Communications
MHP Tel: +44 (0)20 3128 8100
Tim Rowntree / Katie Hunt
About TT Electronics
TT Electronics is a global provider of engineered electronics
for performance critical applications. The Company works with
market-leading customers in the industrial, aerospace and defence,
medical, and transportation sectors. TT has three divisions,
Sensors and Specialist Components, Power Electronics and Global
Manufacturing Solutions.
The product offerings in the Sensors and Specialist Components
division include circuit protection, current sensing, signal
conditioning, optoelectronics, and sensors for torque, position,
pressure, flow and temperature. The Power Electronics division
typically designs and manufactures specialist, high reliability
electronic components and sub-assemblies supplying into power
management, engine controls and connectivity systems. The Global
Manufacturing Solutions division provide high mix low volume
manufacturing solutions for products in a wide range of end
applications ranging from medical devices, to power control modules
used in rail transport infrastructure.
Cautionary statement
This announcement contains forward-looking statements. These
have been made by the directors in good faith based on the
information available to them up to the time of their approval of
this announcement. The directors can give no assurance that these
expectations will prove to have been correct. Due to the inherent
uncertainties, including both economic and business risk factors
underlying such forward looking information, actual results may
differ materially from those expressed or implied by these
forward-looking statements. The directors undertake no obligation
to update any forward-looking statements whether as a result of new
information, future events or otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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