13th Sep 2005 08:59
Cobham PLC13 September 2005 13 September 2005 DISPOSAL OF COBHAM'S FLUID AND AIR DIVISION Cobham plc ("Cobham") announces that it has agreed the disposal of the Fluid andAir division companies ("Fluid and Air" or the "business") to Eaton Corporationof the United States. The consideration of £150 million, on a debt and cash freebasis, is payable in cash on completion, which is anticipated to take place inQ4 2005. The disposal of Fluid and Air is structured as the sale of the entire sharecapital of FR-HiTEMP Limited in the United Kingdom, FR-HiTEMP Inc and StanleyAviation Corporation (together with its wholly owned subsidiary) in the UnitedStates and Stanley Corporation Europe SAS in France. Completion is subject toregulatory approvals including anti-trust clearance in Germany and Austria. The business designs and manufactures hydraulic and air distribution assemblies,composite struts and shafts, and fuel pumps and fuel components. The disposal is in line with Cobham's strategy that its business portfolioshould be focused on key markets and that additional emphasis should be placedon value-added technologies. Cobham intends to use the majority of the disposalproceeds to continue with its strategy of investing in higher growth specialistopportunities in the aerospace and defence markets including Air Refuelling andAuxiliary Mission Equipment where significant opportunities are being activelypursued. Cobham also intends to use approximately £25 million of the proceeds tocontribute into the Cobham Pension Plan, an amount corresponding to the plandeficit attributable to FR-HiTEMP Limited employees. The disposal is expected tobe slightly dilutive to earnings per share in 2006. In the year to 31 December 2004, Fluid and Air generated sales of £114 million,profit before interest, tax, depreciation and amortisation of £14.0 million andprofit before interest, tax and amortisation of £9.8 million. As at that datethe business had gross assets of £130 million. The sale agreement containscertain customary warranties and indemnities. The transaction is alsoconditional upon there being no material adverse change in the business arisingfrom a narrowly defined set of specific circumstances. Commenting on the disposal Allan Cook, Cobham's Chief Executive, said:"This disposal is in line with the Cobham's strategy going forward. We willcontinue actively to review our business portfolio to maximise growthopportunities and value to our shareholders." Dresdner Kleinwort Wasserstein acted as financial adviser to Cobham with respectto the disposal. NOTES TO EDITOR Cobham plc - Cobham designs and manufactures equipment, specialised systems andcomponents supplied to the aerospace, defence, homeland security, search andrescue and communications markets and operates, modifies and maintains aircraftfor military training, special mission flight operations and outsourced freightand passenger services. Fluid and Air - Fluid and Air's operations are located at Titchfield, SouthMolton and Wimborne in the United Kingdom and in Denver and Burbank in theUnited States. ENQUIRIESCobham plc Tel: +44 (0) 1202 882 020Allan Cook, Chief ExecutiveWarren Tucker, Group Financial Director Dresdner Kleinwort Wasserstein Tel: +44 (0) 20 7623 8000Mark HammondClaude Herskovits Weber Shandwick Square Mile Tel: +44 (0) 20 7067 0749John ColesSusan Ellis Dresdner Kleinwort Wasserstein Limited ("Dresdner Kleinwort Wasserstein"), whichis authorised and regulated by the Financial Services Authority, is acting forCobham and for no-one else in connection with the contents of this announcementand will not be responsible to anyone other than Cobham for providing theprotections afforded to customers of Dresdner Kleinwort Wasserstein, or foraffording advice in relation to the contents of this announcement or any mattersreferred to herein. Dresdner Kleinwort Wasserstein has given and not withdrawnits written consent to the issue of this announcement with the inclusion of thereference to its name in the form and context in which it is included. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Cobham