TT electronics plc Acquisition of ACW Technology business
TT electronics plc, a global provider of performance critical technology solutions to leading manufacturers, announces it has acquired the majority of the UK business and assets of ACW Technology Limited (in administration). The Group has also agreed the transfer of associated production from ACW Technology (Zhuhai) Limited to the TT electronics facility in Suzhou, China.
The acquired business provides manufacturing services to leading global customers in the defence, aerospace and industrial markets and will be integrated into the Group's IMS division. It is expected to deliver incremental revenue in 2013 in excess of £25m and will be immediately earnings enhancing on an underlying basis.
The Group has paid consideration of £3.1m, including the repayment of existing debt facilities, and will acquire net assets of c£3.8m. The Group expects to incur exceptional one-off restructuring costs of approximately £0.9m in 2012 and £1.1m in 2013 in connection with the acquisition.
Commenting on the acquisition, Group Chief Executive, Geraint Anderson said:
"This acquisition provides an opportunity to further strengthen our IMS division and brings with it world class customers in our target markets, many of whom we already work with. We continue to identify and evaluate potential acquisitions to enhance the development of our Sensors and Components divisions which supply leading manufacturers in the defence, aerospace, medical, transportation and industrial markets."