Acquisition

RNS Number : 7845E

Spectris PLC

01 October 2008

 



1 October 2008

ACQUISITION OF LDS TEST & MEASUREMENT FOR US$102 MILLION

Spectris plc, the productivity-enhancing instrumentation and controls company, today announces that it has signed an agreement to acquire the LDS Test & Measurement business from SPX Corporation. The purchase consideration of US$102 million, on a debt and cash-free basis, will be met from existing cash and bank facilities and is subject to routine balance sheet adjustments.

LDS is a market leader in integrated vibration test and measurement equipment and software for applications in the aerospace, defence, automotive, machinery, electrical and electronics markets.  The company will become part of the Spectris Test and Measurement segment in combination with Brüel & Kjær Sound and Vibration and HBM.

Brüel & Kjær Sound and Vibration is a world-leading supplier of sound and vibration solutions. LDS Test Systems for the electro-dynamic vibration market complement those from Brüel & Kjær Sound and Vibration, adding capability in complete excitation systems and enabling customers to purchase the complete test system for both structural analysis and vibration testing from a single source. 

HBM is a global market leader in test and measurement and sensor technology. The acquisition of the LDS Data Acquisition and Instrumentation product family, under the prestigious Nicolet brand, brings new and complementary products and technologies to the company, adding data acquisition instruments and software for both physical and electrical applications. This will extend HBM's capability to a full range of testing applications and give access to new industry segments such as electronics and electrical power transmission.

Headquartered in Royston, UK, with eight additional offices in Europe, North America and Asia, LDS employs 277 people. The company had sales of $75.7 million in 2007, adjusted operating profit before interest and tax of $10.1 million and was cash generative. The gross assets acquired are approximately $39.9 million. The acquisition is expected to enhance earnings per share in the first full financial year of ownership and is not expected to incur any exceptional charges or abnormal levels of capital expenditure. The transaction is expected to be completed by the end of the year, subject to customary closing conditions, including receipt of regulatory approval from the competition authorities in Germany. 

John O'Higgins, Chief Executive of Spectris, commented: 'This acquisition is in line with our strategy to build our position in key strategic growth areas. LDS is an excellent fit with the existing businesses in the Test and Measurement segment and provides significant additional product and software capability to enhance our automotive and aerospace customers' productivity in their research and development cycles.'

- ENDS -

Contact:	John O'Higgins, Chief Executive, Spectris plc	Tel: [phone]
	Clive Watson, Group Finance Director, Spectris plc	Tel: [phone]
	Richard Mountain, Financial Dynamics	Tel: [phone]

 

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