Thermometrics Press Release
Spirent agrees sale of Sensing Solutions group
10 September 2001
Spirent plc, the international network technology company, announces that it has entered into an agreement for the sale of the equity and assets of its Sensing Solutions group, and certain related receivables, to a company formed by GE Industrial Systems, a division of General Electric Company of the United States, for a cash consideration of $220 million (£152 million approx.).
The transaction, which is expected to complete by the end of November, is subject to certain conditions including regulatory approvals. The net proceeds of the sale, after deduction of taxation and costs, will be used by Spirent for general corporate purposes including the reduction of debt.
The sale is a further step in Spirent's increasing focus on communications related activities. Under the terms of the deal, all of the approximately 2,000 employees in the Sensing Solutions group will transfer with the business.
The Sensing Solutions group comprises three principal divisions:
- Temperature division: Thermometrics, a global provider of temperature measurement and sensing solutions principally in the automotive and medical sectors;
- Humidity division: including General Eastern Instruments, which provides a broad range of products for the measurement of humidity and pressure to a wide range of markets;
- Pharmaceutical division: Kaye Instruments, a supplier of products and services for thermal calibration, validation and monitoring, primarily in medical device sterilisation and pharmaceutical production.
Combined Sensing Solutions revenues for the year to 31 December 2000 were £90.7 million, and for the six months to 30 June 2001 were £46.6 million. In the financial year ended 31 December 2000, the operating profit for the combined Sensing Solutions businesses totalled £11.3 million. Operating profit for the half year to 30 June 2001 was £4.6 million.
At 30 June 2001, the book value of the net assets to be disposed of was £59.6 million, with related goodwill previously written off on acquisition of £64.8 million.
Nicholas Brookes, Chief Executive of Spirent, commented:
"The divestment of our Sensing Solutions businesses is the next step in our strategy to focus on communications activities to serve the long term growth in the telecommunications industry. We believe that the Sensing Solutions business faces a promising future under its new owners who can provide strong manufacturing and marketing resources to achieve its potential."
Contact:
Nicholas Brookes, Chief Executive
Eric Hutchinson, Finance Director Spirent plc+44 (0) 1293 767676 Jon Coles/Rupert Young
Sara Strong/Nina Pawlak Brunswick (London)
Brunswick (New York) +44 (0)20 7404 5959
+1 212 333 3810 Brian Magnus/Alexander PhillipsMorgan Stanley +44 (0) 20 7425 5000
Background note:
Spirent plc is an international network technology company providing state-of-the-art solutions with a focus on high growth, high margin activities. Our Communications group unites leading edge performance analysis technology with network operations expertise, enabling customers to accelerate the development, deployment and assurance of next generation network equipment and services worldwide. Further information about Spirent plc can be found at www.spirent.com
Spirent plc is listed on the London Stock Exchange (ticker: SPT) and on the New York Stock Exchange (ticker: SPM; CUSIP number: 84856M209).
Spirent and the Spirent logo are trademarks of Spirent plc. All rights reserved.
About GE Industrial Systems
GE Industrial Systems is a global leader in manufacturing products used to distribute, protect and control electrical power and equipment, and supplying product and service solutions for commercial, industrial, residential and utility applications. GE Industrial Systems is one of GE's major businesses. GE is the world's largest diversified technology, manufacturing and services company with a commitment to achieving worldwide leadership. For more information visit the website at www.Geindustrial.com