Business
Sale of UK Electro-Ceramics business to CeramTec
Sale of UK Electro-Ceramics business to CeramTec.
About this update from Morgan Advanced Materials Plc
[{"type":"text","content":"\n \nRNS Number : 4904X Morgan Advanced Materials PLC 22 February 2017 \n\n22 February 2017\n \nMorgan Advanced Materials announces sale of its UK Electro-Ceramics business to CeramTec\n \nMorgan Advanced Materials plc (\"Morgan\") announces today that it has agreed the sale of its UK Electro-Ceramics business (\"UK Electro-Ceramics\"), comprising two sites at Ruabon and Southampton, to CeramTec UK Limited, a fully owned subsidiary of CeramTec GmbH. The transaction is structured as a sale of the business, assets and goodwill for a consideration of £47m on a cash-free, debt-free basis, payable in cash at completion, subject to customary closing working capital adjustments.\nIn the year ended 31 December 2016, UK Electro-Ceramics generated an operating profit of £6.2m on revenues of £22.7m. Gross assets at 31 December 2016 were £7.0m.\nThe divestment is in line with Morgan's strategy to simplify its portfolio and focus on global technology businesses of scale. The proceeds from the sale will be used for re-investment in the core business.\n \nThe UK Electro-Ceramics business produces a range of piezo and dielectric ceramic products used in a wide range of industrial, electronics, medical and defence applications. It forms part of the Technical Ceramics Global Business Unit of Morgan.\n \nPete Raby, Chief Executive Officer of Morgan, said:\n \n\"I am pleased to announce the sale of UK Electro-Ceramics. This divestment supports our aim of simplifying Morgan to focus on technology businesses of scale, allowing us to better service global markets and to drive the most value from our core activities. UK Electro-Ceramics is a specialist business with excellent customer relationships. This transaction will build its scale and combine its expertise with that of CeramTec, creating a stronger and more resilient platform for the future.\"\nHenri Steinmetz, Chief Executive Officer of CeramTec, said:\n \n\"We are excited by the prospect of bringing together the significant expertise and knowledge in piezo and dielectric ceramics which complement each other perfectly. This transaction opens the door to many new opportunities and possibilities for CeramTec: new markets, new application areas, and new developments. Together, we are stronger and we will be able to offer our customers an even broader spectrum of ...