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UPDATE 2-Premier Farnell to sell Akron Brass unit to IDEX for $224.2 mln
2016年2月5日 / 早上8点08分 / 2 年前

UPDATE 2-Premier Farnell to sell Akron Brass unit to IDEX for $224.2 mln

(Adds share movement, analyst comment)

Feb 5 (Reuters) - Engineering supply group Premier Farnell Plc said it would sell its industrial products unit Akron Brass to U.S.-based IDEX Corp for $224.2 million in cash, sending its shares up as much as 10 percent.

Premier had announced its plan to sell Akron Brass in September to focus on its core electronics distribution business amid a dip in sales growth. It slashed interim dividend by 40 percent and shut its direct operations in Brazil in September.

The maker of the low-cost, mini computer Raspberry Pi, said on Friday the deal value represented about 8.8 times Akron Brass’ earnings before interest, tax, depreciation and amortisation (EBITDA) for 2015.

The price fetched was “decent” and the deal would help cut Premier’s debt 125 million pounds ($182 million), Brokerage RBC Capital Markets wrote in a note.

The unit, which also supplies high-performance fire-fighting equipment for fire truck makers, public fire services and industrial facilities, accounted for nearly 8 percent of Premier’s total revenue in 2015.

The company also said that it expected profit for the year ended Jan. 31 to be broadly in line with its previous guidance range of 73 million pounds to 77 million pounds ($106.1 million-$111.9 million).

Lazard & Co Ltd is the lead financial adviser on the Akron Brass sale, Premier said.

Shares in the company were trading up 6.8 percent at 105.50 pence per share at 0849 GMT. ($1 = 0.6882 pounds) (Reporting by Rahul B in Bengaluru; Editing by Gopakumar Warrier)

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