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Premier Farnell sells Akron Brass for USD224.2m

05 February 2016 07:20

Premier Farnell and subsidiaries Celdis Ltd and Premier Farnell Corp have entered into a conditional agreement to sell Akron Brass to IDEX Corp for USD224.2m cash.

Net cash proceeds arising from the Disposal will be used to reduce Premier Farnells existing indebtedness and to redeem its preference shares.

HIGHLIGHTS

- Total consideration of US$224.2 million (�153.8 million), payable in cash on completion, subject to customary adjustments.

- Represents an attractive enterprise valuation of approximately 8.8x Akron Brass FY15 EBITDA.

- The Disposal will enable further focus on executing the initiatives identified as part of its operational review to restore growth in profitability in FY17 and provide increased financial flexibility to pursue growth opportunities within the core electronics distribution business.

- As announced on 17 September 2015, the Boards dividend policy is to target a dividend cover in the range of 1.5x to 2.0x; the Board intends to maintain this policy following the Disposal.

- Completion is expected by the end of March 2016.

Story provided by StockMarketWire.com

Related Company: PFL

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