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TT Electronics agrees to sell Transportation Sensing and Control division to AVX

19 July 2017 07:38

TT Electronics entered a conditional agreement for the sale of its Transportation Sensing and Control division (TS&C Division) to AVX, through its subsidiary AVX Limited, for £118.8 million on a cash free, debt free basis.

As a result of the disposal, TT Electronics will be in a much stronger position to focus on its strategy of investing in structural growth markets where there is increasing electronic content, with the benefit of significantly enhanced financial capacity.


- Total consideration of £118.8 million, payable in cash on completion

- An attractive valuation of approximately 11.1x the TS&C Division's FY16 underlying EBIT

Following the Disposal, TT Electronics will benefit from:

- Improved geographic and market balance;

- A higher operating margin;

- An enhanced financial capacity and additional management focus on the remaining business

Net cash proceeds arising from the disposal will be used to:

- Pay down the company's existing net debt, and fund further investment to accelerate growth through capital investments and acquisitions

Pattern of trade across the remaining business has been good and order book remains strongly ahead. The progressive dividend policy was unchanged. Completion expected in Q4 2017.

The disposal is conditional, amongst other things, upon anti-trust clearance, approval from TT Electronics shareholders and the amount of the intra-group debt owing from the TS&C Division to the retained TT Electronics group being no greater than €65 million.

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Related Company: TTG

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