Acquisition

6th Nov 2006 07:00

TT electronics PLC06 November 2006 TT electronics plc ("TT electronics") Acquisition of Apsco Holdings Inc. ("Apsco") TT electronics plc, a world leader in sensor and electronic componenttechnology, is pleased to announce that it has acquired the entire issued sharecapital of Apsco. Apsco provides electronic manufacturing services (EMS) toOEMs from its dedicated facility, based in Cleveland, USA. This acquisitioncomplements the group's existing EMS facilities in China, the UK and Malaysiaand establishes TT electronics with EMS operations in all its major geographicalmarkets. The purchase consideration is £14.9 million for gross assets of £13.5 million asat 31 December 2005. In the year ended 31 December 2005, Apsco reported pre taxprofits of £1.9 million on sales of £28.5 million. The net asset value at 31December 2005 was £9.6 million. A deferred consideration of up to a maximum of£1.0 million is payable, subject to certain performance criteria. Apsco hasbeen acquired debt free from Morgenthaler Partners. The whole of theconsideration is payable in cash using the group's existing resources. The majority of Apsco's revenues are from major customers with long termrelationships and it has well established positions in the office machine,industrial, medical, defence and communication markets. The company offers afull range of services with a focus on supplying added value services includingprototype development, testing, box build, in-house coating, encapsulation andtotal product life cycle management. Benefits of the acquisition * The acquisition of Apsco, a well established, consistently profitable and growing business operating in the same area of activity as TT electronics, complements the organic growth of the group. * The acquisition broadens the geographic reach of TT electronics and enables the group to achieve a global EMS presence. * The acquisition provides access to a valuable customer base of major OEMs requiring US based suppliers. * The acquisition will create significant synergies with TT electronics' existing businesses. In particular, the group's EMS operation in China will gain access to previously untapped US customers while providing low cost manufacturing services previously unavailable to Apsco. The acquisition will also enhance the group's ability to service UK customers who require a US capability. Commenting on the acquisition, John Newman, Executive Chairman of TTelectronics, said: "We are delighted with the acquisition of Apsco which provides TT electronicswith an EMS presence in the US, representing the opportunity to extend the reachof our EMS business to be truly global. Apsco is a profitable business and webelieve that its future performance will benefit from access to our successfuland fast growing manufacturing business in China which will, in turn, benefitfrom access to the large US market." Enquiries: TT electronics plcJohn W Newman, Executive Chairman Tel: 01932 856 647 BiddicksZoe Biddick Tel: 020 7448 1000 This information is provided by RNS The company news service from the London Stock Exchange

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