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(Alliance News) - TT Electronics PLC on Tuesday said it has acquired a part of Excelitas Technologies Corp after delivering double-digit revenue growth so far in 2019.
The engineered electronics company said it has delivered "strong" organic growth in the ten months to the end of October, with revenue 12% ahead of last year on a constant currency basis and 5% ahead on an organic basis.
Organic revenue growth continues to be driven by Power & Connectivity and Global Manufacturing Solutions, whilst revenue in Sensors and Specialist Components has continued to weaken, the company noted.
TT Electronics said its order book is ahead of the prior year, with "good" visibility from customer wins for recurring multi-million pound revenue, primarily in aerospace & defence and medical markets.
The company said it has extended actions to cut cost and, as a result, its 2019 cash restructuring costs will increase by GBP2 million, it said.
Meanwhile, TT Electronics said the development of its portfolio continues, as it has agreed to buy the aerospace & defence power supply business of Excelitas Technologies, based in Covina, California. The company will pay USD17.7 million for the Excelitas operation, it said, with the transaction expected to be completed in the first quarter of 2020.
TT Electronics said it believes the acquisition will enhance its presence in the US aerospace & defence market and extend its power electronics capabilities to power convertors, moving it up the value chain.
Looking ahead, TT Electronics said it will invest in the business to improve its growth prospects and to develop its engineering capability.
"This update and the acquisition announced today show that TT is continuing to become a higher quality, better balanced group with increasing exposure to the structural growth markets of aerospace, defence and medical," said Chief Executive Richard Tyson.
He added: "We continue to deliver good revenue growth and expect to make further progress in 2019 and beyond, despite a challenging macroeconomic backdrop."
TT Electronics shares were trading 2.9% lower in London on Tuesday midday at 238.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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