Elektron PLC
09 August 2007
FOR IMMEDIATE RELEASE
9 August 2007
ELEKTRON PLC
('Elektron')
Acquisition of Sifam Instruments Limited ('Sifam')
The Board of Elektron, the AIM quoted components and electronics group,
announces that it has acquired the Sifam Instruments Limited group of companies.
Sifam is a leading designer and manufacturer of nano-scale sensors and
positioning actuators, electrical and electronic measuring instruments and
precision multi-shot mouldings.
Summary of the Acquisition
Elektron paid on completion an initial consideration of £2 million in cash
financed from its own resources. The consideration may be increased or reduced
on a pound for pound basis by a maximum of £300,000 subject to net assets at
completion (with Sifam's freehold property assets included at cost price) being
greater or less than £2.1 million and/or profits for the year to 30 November
2007 being greater or less than £285,000.
Post completion, Sifam will settle in full its liability of £910,000 owing to
the Sifam Limited Retirement and Death Benefits Plan. No further payments will
be due in this respect
Overview of Sifam
Sifam operates from a 68,000 square feet facility in Torquay employing 170
staff.
Sifam's Queensgate Instruments division, a spin out from Imperial College is a
recognised world leader in nano-positioning, providing standard and bespoke
products that have the ability to measure and move to nanometer accuracy - one
millionth of a millimetre. Queensgate provides nano-positioning and sensing
solutions for high technology industries and research institutions. Over 70% of
sales are custom designs of performance critical components for multi-national
corporations. Queensgate's products are used in a number of world-renowned
Institutes and Universities, NASA (including the international space station),
the European Space Agency ('ESA'), Massachusetts Institute of Technology ('MIT')
and the Max Planck Institute. Volume customers typically comprise high-end
capital equipment manufacturers for the production of semi-conductors and
magnetic storage drives. In the year to 2 December 2006 Queensgate had sales of
£1.8 million.
Sifam is also involved in areas which are complementary to the existing
activities of Elektron. It manufactures analogue and digital meters as well as
rotary control knobs under the Sifam brand. Its subsidiary Digitron
Instrumentation Limited manufactures temperature, pressure, relative humidity
and data logging instruments.
Sifam had total sales of £8.4 million in the year ending 2 December 2006.
Pre-tax profits excluding an exceptional pension credit were £507,000. The
management accounts for the 7 months ending June 2007 show that the company made
a pre-tax profit of £50,000 on a turnover of £4.7 million. The same accounts
show cash net of borrowings (other than the pension debt mentioned above)
amounted to £64,000 as at 30 June 2007.
Whilst the acquisition of Sifam is not expected to have a material effect on the
earnings of Elektron in the current financial year, there are significant
opportunities for profitable organic growth of Sifam's high margin engineered
products in the years ahead.
Adrian Girling, CEO of Elektron said:
'We are delighted to welcome the Sifam businesses, with their well-known brand
names, to the Elektron team. Sifam brings technologies and know-how that will
help move Elektron further away from dependence on low cost commodity
components. We look forward to exploiting the product and market synergies with
our existing businesses for the benefit of all stakeholders.'
For further information, please contact:
Adrian Girling - Elektron Plc
Tel: 07966 116664
Michael Cornish - Beaumont Cornish Limited
Tel: 0207 628 3396
This information is provided by RNS
The company news service from the London Stock Exchange