Invensys Sells AVS Automotive Business for $250 Million

6 January 2000

Invensys Sells AVS Automotive Business for $250 Million

    LONDON--Jan. 6, 2000--Invensys plc announced on Dec. 24, 1999, the sale of its Automotive Anti-Vibration System (AVS) business to Trelleborg AB for a cash consideration of US$250 million (155 million pounds).
    Completion of the transaction is subject only to regulatory approvals.
    For the twelve months ended Sept. 30, 1999, the division generated sales of US$506 million (315 million pounds) and a profit before interest and tax and operating exceptionals of US$31 million (19 million pounds). Net operating assets, which are the subject of the transaction, are approximately US$281 million (175 million pounds) before goodwill previously written off of 70 million pounds. The sale price represents 0.5 times sales and 8 times operating profit.
    Allen Yurko, Chief Executive of Invensys said: "The sale of our Automotive AVS business brings us even closer to our disposal target of 1.8 billion pounds, and is in line with the Group's policy of disposing of non-core companies as Invensys concentrates on the global Automation and Controls market. The AVS business is a world leader in its markets and we have no doubt that it will flourish with Trelleborg. Total proceeds to date from this divestment program now stand at 1,140 million pounds."
    The AVS business manufactures suspension, engine mount and other vibration-dampening systems for the automotive and industrial markets. Based in Warwickshire, England, the division operates 22 facilities in 10 countries and employs approximately 4,500 people.
    Trelleborg AB, based in Sweden, manufactures and distributes a wide range of industrial products which use polymeric technology. Trelleborg had net sales in 1998 of SEK 25 billion and employs approximately 14,000 people in 35 countries.
    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 Feb. 4,1999 through the merger of BTR plc and Siebe plc.