Business
Divestment of selected business units
Divestment of selected business units.
About this update from Tt Electronics Plc
[{"type":"text","content":"\n\n \n \n\n4 March 2024\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \nTT Electronics plc\n \nDivestment of selected business units\n \nTT Electronics plc (\"TT\", \"the Group\"), a global provider of engineered electronics for performance critical applications, today announces it has reached an agreement to sell three business units within the GMS and Power and Connectivity divisions to the Cicor Group for a cash consideration of £20.8 million on a cash and debt free basis1, subject to normal completion account adjustments (the \"Transaction\").\n \nThe divestment relates to business units in Hartlepool and Cardiff, UK and Dongguan, China which provide electronics manufacturing services (\"EMS\") and certain connectivity products, principally to industrial clients (the \"Transaction Group\").\n \nKey highlights of the Transaction:\n \n· Cash consideration of £20.8 million on a cash and debt free basis; subject to normal completion account adjustments\n· Proceeds from the disposal will reduce TT's existing debt\n· Expected operating margin enhancement of c. 50-70 basis points\n· Simplified operational footprint for the Group\n \nThe divestment reflects the Board's continued efforts to improve the quality of earnings, strengthens the balance sheet and will allow the Group to focus on growth opportunities in its core businesses and end markets to deliver value for all stakeholders.\n \nThe Transaction is expected to complete by the end of Q1 2024 subject to the completion of certain organisation restructuring steps.\n \nThe Cicor Group (SIX Swiss Exchange: CICN) is a global provider of electronic solutions with approximately 2,700 employees.\n \nPeter France, TT Chief Executive Officer commented:\n \n\"We are focused on being a more profitable and resilient business underpinned by a strong balance sheet and operating in attractive growth markets.\n \nThis simplification of our portfolio will further improve our financial profile and allows TT to focus on delivering value to our stakeholders by focusing on our core growth markets, strengthening the balance sheet and driving margin progression. Today's announcement demonstrates our disciplined approach to our portfolio and provides a good...