Filtronic PLC has signed a definitive agreement to sell its Defence Electronics business to Teledyne Ltd., a subsidiary of Teledyne Technologies., for £13.0 M (on a cash free debt free basis).
The Defence Electronics business designs and manufactures customized radio frequency, microwave and millimeter-wave components and subsystems for the global defence industry and has operations in the United Kingdom and Australia. In the twelve months ended 31 May 2008, the business generated £14.5 M of revenue and £1.3 M of operating profit. As at 31 May 2008, Filtronic’s Defence Electronics business had gross assets of £7.4 M.
The financial consideration consists of a cash payment of £13.0 M (subject to the repayment of intra-group debt) and is subject to a working capital adjustment at completion. The transaction is also subject to customary closing conditions and to the UK Secretary of State for Defence not referring the transaction to the Office of Fair Trading before the date of completion. The transaction is expected to complete by the end of August 2008 and the proceeds will be retained within Filtronic’s general corporate resources. Subsequent to this disposal, the company will focus on its point-to-point business.