The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Invensys Sells Australian Automotive Business

17 December 1999

Invensys Sells Australian Automotive Business

    LONDON--Dec. 16, 1999--Invensys plc today announces the sale of its Australian Automotive Casting & Forging business to Australian Mezzanine Investments Pty Limited (AMIL) for a cash consideration of A$50 million ((pound)20 million). Completion of the transaction is subject only to regulatory approvals.
    For the twelve months ended September 30, 1999, the business generated total sales of A$110 million ((pound)44 million), including sales to other Invensys group companies of A$41 million ((pound)16 million) and a profit before interest and tax of A$6 million ((pound)2 million). Net operating assets, which are the subject of the transaction, are approximately A$75 million ((pound)30 million) excluding goodwill previously written off of A$65 million ((pound)26 million). The sale price represents 0.5 times total sales and 9 times operating profit.
    This sale is in line with the Group's policy of disposing of non-core companies as Invensys concentrates on the global automation and controls market. Total proceeds to date from this divestment program now stand at (pound)980 million towards the stated target of (pound)1.8 billion.
    The Australian Automotive Casting & Forging business manufactures a variety of ferrous iron castings, aluminium and steel forgings and sintered metal products, principally for the automotive industry. Headquartered in Melbourne, the division operates four facilities in Australia and employs approximately 600 people.
    AMIL is a venture capital firm based in Sydney, Australia, which acts as Manager of the Australian Mezzanine Investment Trusts (AMIT).
    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.