LONDON TT electronics plc has acquired assets comprising the majority of the business of Semelab Ltd. (Lutterworth, England) which designs and produces specialized radio frequency and power semiconductors, optoelectronic components and power microcircuits and modules, primarily for the U.K. and European markets.
TT is paying £9.8 million (about $ 18.3million), subject to an adjustment based upon the debt free, net assets delivered at completion, which are expected to beapproximately £6.2 million (about $ 11.6million). For the year to October 31 2008, operating profits attributable to the acquired business are expected to be approximately £1 million (about $ 1.9million).
The current management team will remain with Semelab. It is intended that both companies will take part in joint research and development.
TT says the acquisition will broaden its product range in the specialty radio frequency, power semiconductor and optoelectronic sectors and expand its presence in the U.K. and Europe, bringing new customers and increasing the group's sales to important existingmilitary and aerospace customers;
The Semelab products will get access to global customer base and sales presence, providing resources to expand in North America, Asia and mainland Europe.
“The acquisition significantly strengthens our position in the key military and aerospace markets with major customers in the U.K. and Europe, ” said Geraint Anderson, Chief Executive of TT electronics. “We are acquiring a profitable business which will benefit from the group's global sales network and our technical capabilities.”
The Semelab Group is a privately owned U.K. business established in 1974 and which has three operating companies: Semelab, Semefab (Glenrothes, Scotland) which has a wafer fab and carries out ASIC design and marketing, and Magnatec (Luterworth, England) which is a specialist distributor of power and audio semiconductors.
TT electronics (Weybridge, England) operates in four sectors. These are sensors and electronic systems, electronic components, electronic manufacturing services and secure power and industrial. It has 23 manufacturing locations worldwide and in the last financial year has sales from continuing activities of £544.9 million (about $ 1billion).