BTR PLC - Acquisition
August 19 1998 - 3:16AM
UK Regulatory
RNS No 8438p
BTR PLC
19th August 1998
BTR ACQUIRES TELECOMS POWER EQUIPMENT BUSINESS
BTR announces the acquisition of Swichtec Power Systems
Limited ("Swichtec") for a maximum consideration of #44
million (NZ$141 million). The initial consideration is #23
million with additional earn-out payments of up to #21 million
dependent on the financial performance of Swichtec in the
years ended 31 December 1998 and 1999. The transaction is not
conditional on any regulatory approvals and was simultaneously
executed and completed earlier today.
Swichtec designs and manufactures direct current (DC) power
equipment for telecommunications applications such as mobile
phone networks and is a major supplier to the fast growing
markets of Asia Pacific and Latin America. Swichtec supplies
products worldwide from its base in New Zealand. In addition,
it has assembly operations in Malaysia and China and sales
offices in the UK, Brazil and South Africa. In the year ended
31 March 1998, Swichtec reported sales and operating profit of
#19 million and #3 million respectively. Sales growth in
recent years has been well in excess of 10% per annum and as
at 31 March 1998 Swichtec had net operating assets of #6
million. Swichtec has over 600 employees worldwide.
Swichtec and BTR supply the same major telephone systems
operators and telecommunications original equipment
manufacturers with DC power supplies and stand-by batteries.
These common customers are serviced through the same
distribution networks and are increasingly seeking packaged
power systems rather than sourcing individual power supply
components.
Commenting on the acquisition, Ian Strachan, Chief Executive
of BTR said:
"Swichtec has world leading switch-mode power conversion
technology and serves high growth industries such as mobile
telecommunications. The combination of Swichtec with our
global reach in stand-by batteries and uninterruptible power
supplies, as well as our strong customer relationships in the
telecommunications sector, offers additional growth
opportunities for BTR. We are pleased to have secured the
acquisition of Swichtec and the continued commitment of the
existing management team to grow the business under BTR's
ownership."
For further information contact:
Investors and Analysts
David Robbie Tel: +44(0)171 821 3767
Media
Peter Gavan Tel: +44(0)171 821 3712
Jonathan Glass, Brunswick Tel: +44(0)171 404 5959
END
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