Invensys Sells Its Automotive Sealing Systems Business for $400 Million
28 January 2000
Invensys Sells Its Automotive Sealing Systems Business for $400 Million
LONDON, England--January 28, 2000--Invensys plc today announced the sale of its Automotive Sealing Systems business to CVC Capital Partners for a cash consideration of US$400 million ((pound)245 million). Completion of the transaction is subject only to regulatory approvals.For the twelve months ended September 30, 1999, the division generated sales of US$1,037 million ((pound)636 million) and a profit before interest and tax and operating exceptionals of US$55 million ((pound)34million). Net operating assets, which are the subject of the transaction, are approximately US$620 million ((pound)380 million) before goodwill previously written off of (pound)152 million.
Allen Yurko, Chief Executive of Invensys said:
"The sale of our Sealing Systems business is another significant step towards completing the great majority of our disposal program before the end of our current financial year. Total proceeds to date, from this divestment program, now stand at (pound)1.4 billion and we are confident of achieving our target of (pound)1.8 billion. This sale is in line with the Group's policy of divesting non-core companies as Invensys concentrates on the global Automation and Controls market. This business is a leading manufacturer of sealing systems and supplies every major vehicle manufacturer around the world. We have no doubt that Invensys Sealing Systems will flourish with CVC."
Invensys Sealing Systems manufactures polymer and rubber-based seals for car doors, windows and hoods. The company sells to every major original equipment manufacturer around the world including General Motors, Ford, BMW and Audi. Sealing Systems operates through 35 facilities in 16 countries and technical agreements or joint ventures in other major markets. The Company's headquarters are located in Leicestershire, England and it has significant manufacturing operations in the United States and Europe, as well as facilities in the higher growth emerging markets of Eastern Europe, South America and Asia. The company employs approximately 12,000 people.
CVC Capital Partners is a leading independent private equity provider in Europe with total funds under management in excess of US$4 billion. CVC has offices in 10 European countries and has made investments in more than 200 companies across Europe.
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.