21st Dec 2015 10:05
LONDON (Alliance News) - TT Electronics PLC on Monday said it has bought electromagnetic components and electronic systems producer Aero Stanrew Group Ltd for GBP42.2 million on a cash and debt free basis, with the acquisition to be slotted into the group's advanced components division.
The engineered electronics provider said it is acquiring the Barnstaple, Devon-headquartered business in a move to accelerate a return to sustainable and profitable growth, in a move designed to strengthen its position in the aerospace and defence market.
Aero Stanrew is expected to generated adjusted earnings before interest, tax, depreciation and amortisation of GBP3.7 million on revenue of GBP18.0 million in the 2015 calendar year. The deal is expected to boost TT Electronics' earnings immediately, with return on invested capital to exceed cost of capital in the second full year of ownership.
"Aero Stanrew is an excellent business and has significant further potential as part of TT. There is a strong technology, customer and cultural fit between the two businesses, and we believe that there is mutual benefit in making Aero Stanrew part of the group," Chief Executive Richard Tyson said.
Shares in TT were up 1.1% at 154.68 pence on Monday morning, having risen as high as 157.00p.
By Samuel Agini; [email protected]; @samuelagini
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