Elektron Technology PLC Disposal of Sheen Instruments (1387U)

TIDMEKT

RNS Number : 1387U

Elektron Technology PLC

20 October 2017

20 October 2017

Elektron Technology plc

("Elektron" or the "Company")

Sale of Sheen Instruments Limited

Elektron Technology plc (AIM:EKT, "Elektron" or the "Group"), the global technology group, has completed the sale of its wholly owned subsidiary, Sheen Instruments Limited ("Sheen"), to Industrial Physics Inc. The transaction was executed through Industrial Physics' Dutch subsidiary, Büchel B.V., for a total gross consideration of approximately GBP1.2 million cash of which GBP1.1 million was received on completion and approximately GBP0.1 million is due in October 2018 subject to any adjustment for unforeseen liabilities. Industrial Physics is a platform company of Union Park Capital, a US-based private equity firm specializing in industrial technology.

Sheen is a leading manufacturer and supplier of inspection and testing instruments used in the paint, coating, automotive and other industries.

In the year ended 31 January 2017 the sales of Sheen were GBP2.6 million and 'Brand Contribution' was GBP0.2 million. Brand Contribution is an internal measure of profitability before the allocation of certain Group pooled costs such as finance, information technology and human resources. After making a deduction for a fair share of these costs the Board estimates Sheen's operating profit to be GBP0.1m million for the year ended 31 January 2017.

The cash proceeds will be used by Elektron for working capital purposes. The disposal will be dilutive of earnings initially but the Board expects to improve the performance of the remaining businesses.

The disposal is part of the Group's rationalisation of its portfolio, further focusing its investment on its remaining businesses namely Bulgin, Checkit, Elektron Eye Technology and Queensgate.

Enquiries:

 
 
   Elektron Technology plc               +44 (0) 1223 
   www.elektron-technology.com                371 000 
 Keith Daley - Chairman 
 Andy Weatherstone - Chief Financial 
  Officer & Company Secretary 
 
                                            +44 (0)20 
 finnCap (Nominated Adviser & Broker)       7220 0500 
 Ed Frisby / Scott Mathieson - 
  Corporate Finance 
 Abigail Wayne - Corporate Broking 
 

Notes to Editors

Elektron conceives designs and markets innovative engineered products and services for businesses that connect, monitor and control. We have a multi skilled team of engineers, software and product line specialists based in Cambridge focused on the opportunities created by global trends in the following areas:

- Demand for ubiquitous power and data: Bulgin

- New waves of "aware" business applications: Checkit

- The effect of ageing on sight: Elektron Eye Technology

- Growth in high precision manufacture: Queensgate

This information is provided by RNS

The company news service from the London Stock Exchange

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October 20, 2017 02:00 ET (06:00 GMT)