Filtronic Regulatory News (FTC)

1 Aug 2008 08:38



1 August 2008

Filtronic agrees to sell Defence Electronics business to Teledyne

Filtronic PLC ("Filtronic") today announced that it has signed a definitive agreement to sell its Defence Electronics business to Teledyne Limited, a subsidiary of Teledyne Technologies Incorporated, for £13.0 million (on a cash free debt free basis).

Filtronic's Defence Electronics business designs and manufactures customised radio frequency, microwave and millimetre wave components and subsystems for the global defence industry and has operations in the United Kingdom and Australia. In the twelve months ended 31 May 2008, the business generated £14.5 million of revenue and £1.3 million of operating profit. As at 31 May 2008, Filtronic's Defence Electronics business had gross assets of £7.4 million.

The consideration consists of a cash payment of £13.0 million (subject to the repayment of intra-group debt) and is subject to a working capital adjustment at completion. The proceeds of the transaction will be retained within Filtronic's general corporate resources. The transaction is subject to customary closing conditions and to the Secretary of State for Defence not referring the transaction to the Office of Fair Trading before the date of completion. The transaction is expected to complete by the end of August 2008.

Subsequent to this disposal, the company will focus on its Point to Point business.

After completion, the company's balance sheet will contain around £40m (c 55p per share) in cash and it is the intention of the Board to declare another special dividend.

Enquiries:

Important information:

This announcement is made by Filtronic and is the sole responsibility of Filtronic. Filtronic is exclusively responsible for the contents of this announcement and neither Hawkpoint Partners Limited, Teledyne Technologies Incorporated, Teledyne Limited nor any person acting on Filtronic's behalf are responsible for or shall have any liability for any information, representation or statement relating to Filtronic or Teledyne contained in this announcement or any information previously published by or on behalf of Filtronic or otherwise.

Hawkpoint Partners Limited, which is authorised and regulated by the Financial Services Authority, is acting for Filtronic and for no-one else in connection with the contents of this announcement and will not be responsible to anyone other than Filtronic for providing the protections afforded to customers of Hawkpoint Partners Limited or for affording advice in relation to the contents of this announcement or any matters referred to herein.