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INVENSYS SELLS THE IHP DIVISION OF BROOK CROMPTON TO LINDETEVES-JACOBERG FOR £17 MILLION.
09 January 2002 - Invensys plc
| Invensys plc announced the sale of the Integral Horsepower Motor ('IHP') Division of Brook Crompton to Lindeteves-Jacoberg of Singapore for £17 million. Consideration of £17 million includes £10 million to be paid in cash and £7 million of debt to be transferred with the business. Brook Crompton manufactures low voltage AC and DC electric motors with a power range up to 750 kW. Its motors are used in many applications including extraction fans, cranes, elevators and ski lifts. |
In the 12 months to 30th September 2001, the IHP Division of Brook Crompton had sales of £106 million. Net assets which are the subject of this transaction amount to approximately £70 million. Goodwill previously written off to reserves amounts to approximately £100 million. The business has been loss making over recent years and is currently undergoing a major restructuring program. Lindeteves-Jacoberg is listed on the Singapore Stock Exchange. It is a diversified industrial group with interests in electric motor businesses in China, Australia, Germany and Italy. The disposal is subject to customary consultative procedures and is expected to complete in early 2002. Rick Haythornthwaite, CEO of Invensys said 'Brook Crompton has been for sale and reporting through our Disposal Group since March 2001. This transaction substantially completes the disposal of the Brook Crompton Group. Whilst this is a significant discount to net assets, it fairly represents market value considering its current trading position and its on-going restructuring cost requirements.' Lim Say Hui, Chairman and Managing Director of LJ said 'The acquisition of Brook Crompton is a continuation of LJ's strategy of rapidly expanding its core electric motors business and presents a significant opportunity in view of Brook Crompton's highly respected brand name, range of products, market presence and the synergies that will result from the acquisition. The acquisition will make LJ one of the leading motor manufacturers in Europe'.
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About: Invensys plc
Invensys is a global automation, controls and process solutions Group. We empower you to increase productivity, reduce waste, remove cost from your supply chain, boost profitability and demonstrate measurable improvement in your company's overall performance.
As a global leader in resource productivity, Invensys offers products and services, expertise, and technologies that enable you to maximize return on investments, conserve resources and optimize performance across your value chain.Operating in more than 60 countries worldwide, Invensys meets the needs of the process and batch industries - from oil & gas, powerand utilities, chemicals, and rail systems to food & beverage, healthcare, and data communications - as well as the discrete and hybrid manufacturing sectors, and provides components, systems and services to the heating management, commercial refrigeration, residential safety and automotive industries, and electronic and electro-mechanical systems and components to appliance and related industries. Not only do we help improve your bottom line, by enabling you to manage your assets more efficiently, but we also help you to protect the environment. As the result of our efforts, we have been awarded the prestigious Energy Star Label by the United States Environmental Protection Agency (EPA). Taking an integrated strategic approach to increasing your productivity, we enable you to increase output from your existing plants and technology investments, provide you with solutions that create more efficiencies in your supply chain, and increase performance at every level. From the production line to executive offices, from customer relationship and procurement management to distribution logistics, we can help you improve productivity, optimize performance, and increase profitability. |
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