Checkit Regulatory News (CKT)

9 Aug 2007 07:01

Elektron PLC09 August 2007 FOR IMMEDIATE RELEASE 9 August 2007 ELEKTRON PLC ("Elektron") Acquisition of Sifam Instruments Limited ("Sifam") The Board of Elektron, the AIM quoted components and electronics group,announces that it has acquired the Sifam Instruments Limited group of companies.Sifam is a leading designer and manufacturer of nano-scale sensors andpositioning actuators, electrical and electronic measuring instruments andprecision multi-shot mouldings. Summary of the Acquisition Elektron paid on completion an initial consideration of £2 million in cashfinanced from its own resources. The consideration may be increased or reducedon a pound for pound basis by a maximum of £300,000 subject to net assets atcompletion (with Sifam's freehold property assets included at cost price) beinggreater or less than £2.1 million and/or profits for the year to 30 November2007 being greater or less than £285,000. Post completion, Sifam will settle in full its liability of £910,000 owing tothe Sifam Limited Retirement and Death Benefits Plan. No further payments willbe due in this respect Overview of Sifam Sifam operates from a 68,000 square feet facility in Torquay employing 170staff. Sifam's Queensgate Instruments division, a spin out from Imperial College is arecognised world leader in nano-positioning, providing standard and bespokeproducts that have the ability to measure and move to nanometer accuracy - onemillionth of a millimetre. Queensgate provides nano-positioning and sensingsolutions for high technology industries and research institutions. Over 70% ofsales are custom designs of performance critical components for multi-nationalcorporations. Queensgate's products are used in a number of world-renownedInstitutes and Universities, NASA (including the international space station),the European Space Agency ("ESA"), Massachusetts Institute of Technology ("MIT")and the Max Planck Institute. Volume customers typically comprise high-endcapital equipment manufacturers for the production of semi-conductors andmagnetic storage drives. In the year to 2 December 2006 Queensgate had sales of£1.8 million. Sifam is also involved in areas which are complementary to the existingactivities of Elektron. It manufactures analogue and digital meters as well asrotary control knobs under the Sifam brand. Its subsidiary DigitronInstrumentation Limited manufactures temperature, pressure, relative humidityand data logging instruments. Sifam had total sales of £8.4 million in the year ending 2 December 2006.Pre-tax profits excluding an exceptional pension credit were £507,000. Themanagement accounts for the 7 months ending June 2007 show that the company madea pre-tax profit of £50,000 on a turnover of £4.7 million. The same accountsshow cash net of borrowings (other than the pension debt mentioned above)amounted to £64,000 as at 30 June 2007. Whilst the acquisition of Sifam is not expected to have a material effect on theearnings of Elektron in the current financial year, there are significantopportunities for profitable organic growth of Sifam's high margin engineeredproducts in the years ahead. Adrian Girling, CEO of Elektron said: "We are delighted to welcome the Sifam businesses, with their well-known brandnames, to the Elektron team. Sifam brings technologies and know-how that willhelp move Elektron further away from dependence on low cost commoditycomponents. We look forward to exploiting the product and market synergies withour existing businesses for the benefit of all stakeholders."For further information, please contact: Adrian Girling - Elektron PlcTel: 07966 116664 Michael Cornish - Beaumont Cornish LimitedTel: 0207 628 3396 This information is provided by RNS The company news service from the London Stock Exchange