2nd Apr 2008 07:01
TT electronics PLC02 April 2008 TTG.L TT electronics plc Acquisition of New Chapel Electronics Limited ("NCE") TT electronics plc, a world leader in sensor and electronic componenttechnology, is pleased to announce that it has acquired the entire issued sharecapital of NCE. NCE is based in the UK and designs and manufactures specialistinterconnection systems for the aerospace and defence markets. The acquisitionwill complement TT electronics' successful and growing interconnection systemsbusiness by providing improved sales channels to the high margin military andcivil aerospace sectors. The initial consideration for the acquisition is £4.2 million and is subject toagreement of completion accounts. This is payable in cash, with further deferredconsideration of up to a maximum of £1.0 million payable on 28 February 2009,subject to the achievement of certain performance criteria. In the year ended 28February 2007 NCE reported EBIT of £0.13 million on sales of £5.2 million. Afternon recurring costs, the adjusted EBIT was £0.58 million. NCE is being acquireddebt free and funded entirely from the group's existing cash resources. Commenting on the acquisition, Neil Rodgers, Chief Executive of TT electronics,said: "I am pleased to announce this acquisition which is in line with our strategy ofmaking bolt-on acquisitions to enhance growing business units. NCE suppliescustom-made products which achieve high profit margins. As the business iscomplementary to our existing operations in the sector, we expect to derivefurther benefit from the acquisition through exploiting cross sellingopportunities and better purchasing opportunities. NCE is profitable, has anexcellent customer base and will provide our already successful interconnectionsystems operations with additional momentum." Enquiries: TT electronics plc Tel: 01932 841 310Neil Rodgers, Chief Executive Biddicks Tel: 020 7448 1000Zoe Biddick This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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