LONDON: TT Electronics plc 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 basis, subject to normal completion account adjustments.

The 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. For the year ended 31 December 2022 the business generated £72.5 million of revenue and a loss before tax of £0.7 million.

As at 30 June 2023 the Gross Assets of the Transaction Group were £85.4 million. Consequently, the Transaction is expected to result in a one-off held for sale write down expense for the Group in its FY23 accounts of circa £32 million.

The 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.

The Transaction is expected to complete by the end of Q1 2024 subject to the completion of certain organisation restructuring steps.

The Cicor Group (SIX Swiss Exchange: CICN) is a global provider of electronic solutions with approximately 2,700 employees.

Peter France, TT Chief Executive Officer commented: “We are focused on being a more profitable and resilient business underpinned by a strong balance sheet and operating in attractive growth markets.

This 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 home for our colleagues transferring to Cicor.

I would like to thank the teams who will transfer across to Cicor for their hard work and wish them continued success.”

TT Electronics is a global provider of engineered electronics for performance critical applications.

The company operates in industries where there are structural growth drivers, working with market-leading customers primarily in the industrial, medical, aerospace and defence sectors. Products designed and manufactured include sensors, power management devices and connectivity solutions. TT has design and manufacturing facilities in the UK, North America and Asia.

The company has three divisions. The Power and Connectivity division designs and manufactures power application products and connectivity devices which enable the capture and wireless transfer of data. The Global Manufacturing Solutions division provides manufacturing services and engineering solutions for our product divisions and to customers that often require a lower volume and higher mix of different products. The Sensors and Specialist Components division works with customers to develop standard and customised solutions including sensors and power management devices. Our solutions improve the precision, speed and reliability of critical aspects of our customers’ applications.