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Invensys Sells Australian Axle and Stamping Business

16 February 2000

Invensys Sells Australian Axle and Stamping Business

    LONDON, England--February 15, 2000--Invensys plc today announced the sale of its Australian Automotive Axle & Stamping business to Dana Corporation for a cash consideration of A$100 million (US$63 million; (pound)39 million). Completion of the transaction is subject only to regulatory approvals.
    For the twelve months ended September 30, 1999, the division generated sales of A$ 202 million ((pound)79 million) and a profit before interest and tax and operating exceptionals of A$17 million ((pound)7 million). Net operating assets, which are the subject of the transaction, are approximately A$122 million ((pound)48 million), before goodwill already written off of (pound)56 million.
    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)1.46 billion towards the stated target of (pound)1.8 billion.
    The Australian Automotive Axle & Stamping business produces axles, stampings and related components for vehicle manufacturers and the automotive aftermarket. The division has three facilities in Australia as well as operations in Indonesia and South Africa. It employs approximately 1,400 people.
    Dana Corp is one of the world's largest independent suppliers to vehicle manufacturers and the automotive aftermarket. Based in Ohio, USA, the company operates some 330 major facilities in 32 countries and employs more than 86,000 people. The company reported sales of US$12.6 billion in 1998.
    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.