News

1 August 2008

 

Filtronic to sell Defence Electronics business to Teledyne

Filtronic plc of Shipley, UK has agreed to sell its Defence Electronics business to Teledyne Ltd, a UK subsidiary of Teledyne Technologies Inc of Thousand Oaks, CA, USA, for £13m (on a cash-free, debt-free basis).

Filtronic’s Defence Electronics business designs and manufactures customised RF, microwave and millimetre wave components and subsystems for the defence industry and has operations in the UK and Australia. Filtronic previously, at the end of February, sold its Filtronic Compound Semiconductor Ltd business in Newton Aycliffe, UK (which makes gallium arsenide-based devices for RF, microwave and millimetre wave applications) to RF Micro Devices Inc of Greensboro, NC, UK.

In the year ended 31 May, the business generated £14.5m of revenue and £1.3m of operating profit, and had gross assets of £7.4m. 

The consideration consists of a cash payment of £13m (subject to the repayment of intra-group debt) and is subject to a working capital adjustment at completion. The proceeds of the transaction will be retained within Filtronic’s general corporate resources. The transaction is 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.

Subsequent to the disposal, Filtronic says that it will focus on its Point to Point business.

See related items:

RFMD delays Greensboro fab investment as it completes Filtronic acquisition

Teledyne completes Judson acquisition

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Visit: www.filtronic.co.uk