Switzerland's Cicor to buy TT Electronics in £287m deal

(Sharecast News) - TT Electronics said on Thursday that it has agreed to be taken over by Swiss rival Cicor Technologies in a £287m cash and shares deal. Under the terms of the acquisition, Cicor will pay 100p per share in cash and 0.0028 new Cicor shares. The price, which values TT Electronics - a manufacturer of electronic components - at 155p per share, is a premium of about 64% to the closing share price on Wednesday.

Once the deal completes, TT shareholders will own about 10% of Cicor.

Cicor Chief executive Alexander Hagemann said: "The combination of Cicor and TT is a decisive, transformative step that accelerates delivery of our long-term strategy, and positions the Enlarged Cicor Group as the largest pure play global EMS provider in the high mix low volume business, with a diversified footprint across our key geographies.

"This unique combination brings together two highly complementary businesses, creating a platform of scale and capability across the full value chain - from complex system-level integration to electromagnetic components. It enables us to serve customers as a true innovation partner in high-growth sectors such as A&D and healthcare technology, whilst maintaining a strategic focus on industrial automation."

TT Electronics chair Warren Tucker said the company's "insufficient scale has affected its growth and profitability, and has constrained its ability to optimise its portfolio".

"Cicor has made a compelling offer which delivers accelerated value for shareholders and represents an attractive premium to recent trading levels and crystallises a substantial proportion of shareholder value in cash today," he said.

"At the same time, TT shareholders retain the ability to benefit from the significant potential synergies and future upside from their continued ownership in the Enlarged Cicor Group."

At 0810 GMT, the shares were up 54% at 146.20p.