Invensys Sells its Automotive Fluid Handling Division for 151 Million Pounds
23 November 1999
Invensys Sells its Automotive Fluid Handling Division for 151 Million Pounds
LONDON--Nov. 23, 1999--Invensys plc announces today the sale of its Automotive Fluid Handling business to Cooper Tire & Rubber Company for cash proceeds of 151 million pounds ($244.5 million).The division is headquartered in Southfield, Michigan (USA) and manufactures fluid handling automotive components, modules and sub-systems supplied directly to most major car manufacturers. The company employs 4,000 people in 16 operating locations and was formed in 1996 by combining parts of Robertshaw together with MEFA, Form-Rite, Fabexcnica and Tecalemit. The company's business extends across North and South America, Europe and Australia, with North America and Europe representing 53% and 37% of sales respectively.
Commenting on the sale, Allen Yurko, Chief Executive of Invensys, said: "Our disposal program continues with this important second divestment from our Automotive group and total proceeds now stand at approximately 0.8 billion pounds towards our target of 1.8 billion pounds. This disposal reinforces our strategy of focusing on Automation and Controls, which is where we see the greatest opportunity for continued growth at Invensys."
For the twelve months ended September 30, 1999, the Fluid Handling business delivered sales of 250 million pounds and profit before interest and taxation of 12 million pounds. Net operating assets of the business are approximately 210 million pounds - excluding 70 million pounds goodwill already written off.
Invensys plc is a global leader in the Automation and Controls industry. With its head office in London, England it operates in all regions of the world through four focused divisions - Intelligent Automation, Industrial Drive Systems, Power Systems and Controls. With over 100,000 employees, the company's products and services range from advanced control systems and networks for automating industrial plants and controlling the environments of buildings, to electronic devices and controls found in residential buildings and light commercial applications, plus complete power systems for the telecommunications and information technology industries. The Group was formed on February 4, 1999 through the merger of BTR plc and Siebe plc.