17th Sep 2020 17:56
TT Electronics PLC - manufacturer of electronic components and provider of manufacturing services - Agrees to buy US-based designer and manufacturer of high-reliability power and electro-magnetic assemblies Torotel Inc for USD43.4 million. Deal will be part-funded by placing of 10.0 million shares at 200 pence each, raising GBP20 million. TT's leverage is expected to "increase modestly" to about 1.8-times-Ebitda on a pro-forma basis, taking account of the equity placing, preserving TT's robust balance sheet position, the firm said. Torotel reported net sales of USD26.1 million for its year ended April 30, generating adjusted Ebitda of USD3.0 million and reported pretax profit of USD800,00.
The deal is subject to approval by Torotel's shareholders. Torotel shareholders representing about 62% have voted in favour of the deal and the Torotel stockholder vote - which requires a 66.67% majority - is expected to take place in November. Completion is expected in the fourth quarter.
Chief Executive Richard Tyson said: "We are really excited about the acquisition of Torotel, a business we have been tracking for some time. It is an excellent fit and complementary to TT's existing US power electronics business, strengthening our position in critical defence applications. We look forward to welcoming the Torotel team into the TT group."
Current stock price: 212.00 pence
Year-to-date change: down 15%
By Paul McGowan; [email protected]
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