Disposal of Ottomotores
21 November 2012
TT electronics plc
(the "Group")
Disposal of Ottomotores
TT electronics plc, a global provider of performance critical technology solutions to leading manufacturers, announces it has entered into an agreement to sell the businesses comprising the remainder of its Secure Power division (together "Ottomotores") to a subsidiary of Generac Holdings Inc. ("Generac"). Ottomotores, based in Mexico and Brazil, provides secure power solutions to customers primarily in Mexico and other markets in Latin America. The sale is subject to certain conditions commensurate with a transaction of this nature, including approval from competition authorities in Mexico. Completion of the disposal is expected to take place before the end of January 2013. All personnel employed by Ottomotores will transfer with the sale.
Under the agreement, Generac will pay consideration of $46.5m (£29.2m) in cash, subject to an adjustment based on the balance sheet at completion including assumed debt.
The proceeds from the disposal further strengthen the Group's balance sheet giving flexibility to deploy capital to maximise returns to shareholders. The Group has identified projects for organic investment to deliver margin improvement and growth in the short and medium term, and continues to evaluate opportunities to supplement this with acquisitions.
For the year ended 31 December 2011, the underlying operating profit for Ottomotores was £3.7m on revenue of £50.9m and the value of gross assets at 31 December 2011 was £39.4m.
Commenting on the disposal, Group Chief Executive, Geraint Anderson said:
"The sale of Ottomotores will bring to a successful conclusion the disposal of the operations which previously comprised the Group's Secure Power division and is in line with our strategy to realise value from businesses that are non-core. It leaves us focused on our electronics divisions supplying leading manufacturers in the defence, aerospace, medical, transportation and industrial markets. We intend to deliver value to shareholders by investing for growth in the business and continuing to drive margin progression."
Enquiries:
|
TT electronics plc Geraint Anderson, Group Chief Executive Shatish Dasani, Group Finance Director |
Tel: 01932 825300
|
|
|
|
|
Hudson Sandler Andrew Hayes/Andrew Leach/Wendy Baker |
Tel: 020 7796 4133 |
Notes to editors: Generac Holdings, Inc. (NYSE: GNRC) is a leading designer and manufacturer of backup power generation products serving residential, light commercial and industrial markets in North America.
This information is provided by RNS
Latest directors dealings
- 1 hour ago Tertiary Minerals
- 1 hour ago Hargreaves Services
- 14 hours ago ASOS
- 14 hours ago MJ Gleeson
- 14 hours ago Rolls-Royce Holdings