10th Dec 2020 11:03
(Alliance News) - Spectris PLC on Thursday said it is offloading its its Bruel & Kjaer Vibro and Millbrook businesses.
"The transactions are in line with Spectris' strategy to simplify and focus its portfolio. Subject to the completion of these disposals, the proceeds will be used to further strengthen Spectris' balance sheet and then be deployed in accordance with its capital allocation policy," the company explained.
Spectris has agreed with NSK Ltd, for NSK to acquire B&K Vibro from Spectris for a headline value of EUR180 million.
B&K Vibro, part of Spectris' Industrial Solutions unit, is an independent supplier of machinery protection and condition monitoring systems for rotating and reciprocating industrial machinery, such as pumps, turbines, compressors, motors, generators and gearboxes.
Turning to the Millbrook deal, Spectris has agreed to sell the business to UTAC CERAM, the French automotive testing and homologation specialist, for a headline value of GBP133 million.
Millbrook, also part of Spectris' Industrial Solutions unit, provides vehicle test, validation and engineering services to customers in the automotive, transport, tyre and petrochemical industries.
Combined, the two disposals have a headline value of about GBP296 million.
Spectris Chief Executive Andrew Heath said: "I am pleased that we continue to execute our portfolio optimisation strategy to become a more focused and profitable business and have found highly-complementary businesses to become the new owners of our companies."
Heath noted the B&K Vibro sale delivers "compelling value".
"Being part of a global organisation with complementary products and greater commercial alignment will be a positive move for the B&K Vibro business," he added.
"For Millbrook, the structure of the transaction provides us an immediate cash inflow plus the chance to participate in the future performance of the combined group, which will now be able to provide a more extensive and comprehensive range of services to its clients," Heath continued.
Shares in Spectris were 1.4% higher in London on Thursday at 2,852.00 pence each.
By Paul McGowan; [email protected]
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