10th Jan 2022 14:44
TT Electronics PLC - Woking, England-headquartered manufacturer of electronic components - Acquires the Power & Control business of Ferranti Technologies Ltd from Elbit System UK Ltd for GBP9.0 million in cash. Expects the acquisition of Manchester-based designer and manufacturer of mission-critical complex power and control sub-assemblies to be "modestly" earnings enhancing in the first year and to generate cost synergies of about GBP400,000 by year three.
Separately, TT states that full-year trading was in line with its update from November that guided for an annual adjusted operating profit of about GBP35 million.
"We are pleased to announce the acquisition of Ferranti's Power and Control business which is in line with our strategy for growth at higher margins and moving up the value chain in our target end markets in acquisition & divestitures. This highly attractive platform adds scale and technology capabilities to our Power Solutions business in Europe. We expect to achieve our financial return hurdle rate in the first full year," Chief Executive Richard Tyson says.
Current stock price: 261.00 pence, up 2.8% on Monday
12-month change: up 19%
By Abby Amoakuh; [email protected]
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