Spectris PLC Divestment of Red Lion Controls (3924W)
11 Diciembre 2023 - 11:00AM
UK Regulatory
TIDMSXS
RNS Number : 3924W
Spectris PLC
11 December 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Completion of portfolio rationalisation with divestment of Red
Lion Controls
-- Divestment of Red Lion Controls (Red Lion) for $345 million
-- Servomex to be reported as part of Spectris Scientific following completion
-- Launch of share buyback programme of up to GBP150 million
Divestment of Red Lion
11 December 2023 - Spectris plc (SXS: LSE) ('Spectris' or 'the
Group' or 'the Company'), the expert in providing insight through
precision measurement, today announces the sale of Red Lion
Controls ('Red Lion') to HMS Networks (HMS) for $345 million
(GBP286 million).
Red Lion provides industrial organisations innovative software
and hardware solutions to access and connect disparate assets using
the industrial ethernet and to enable visualisation of valuable
data. For the 2022 financial year, Red Lion generated sales of
GBP91.3 million, adjusted operating profit of GBP16.0 million and,
as at 30 June 2023, the book value of Red Lion's gross assets was
GBP105.5 million. The consideration for the sale will be settled in
cash subject to customary adjustments for working capital, cash and
debt and is subject to customary completion conditions and
regulatory approvals, with completion expected to take place in the
first half of 2024. After allowing for tax, the net proceeds from
the sale are expected to be approximately $275 million (GBP228
million).
Portfolio rationalisation complete
This divestment increases the total net sale proceeds over the
past 5 years to GBP1.2 billion and completes the portfolio
rationalisation envisaged in 2019. Following completion, Servomex,
which is currently reported alongside Red Lion as part of our
'Other' division, will be reported as part of the Spectris
Scientific division, reflecting its position as a world leader in
the provision of specialist premium gas and moisture analysis
instruments and solutions.
Strong balance sheet provides capital allocation flexibility
The Group remains committed to driving sustainable organic
growth, with significant investment in R&D, while continuing to
use our strong balance sheet to compound growth through
value-enhancing acquisitions, ranging from early-stage technologies
and bolt-ons, to larger acquisitions, where we continue to maintain
an active pipeline of opportunities.
Having considered the future acquisition pipeline alongside our
balance sheet position including the expected proceeds from the Red
Lion divestment, we are today announcing a further share buyback
programme of up to GBP150 million, with the first tranche of GBP50
million to commence before the end of this financial year.
Andrew Heath, Chief Executive, said:
"Since 2019, we have transformed Spectris into a higher-quality,
more resilient business, focused on attractive markets benefiting
from a number of structural growth trends. Following today's
announcement and with Servomex being reported as part of Spectris
Scientific, we have two great premium precision measurement
businesses with attractive growth trajectories, aligned to markets
with a strong sustainability focus. I would like to thank the whole
Red Lion team for their contribution to Spectris and wish them all
well for the future."
Spectris will publish its full-year results for 2023 on 29
February 2024.
The person responsible for arranging the release of this
announcement on behalf of Spectris is Rebecca Dunn, Company
Secretary.
For and on behalf of Spectris plc
LEI Number: 213800Z4CO2CZO3M3T10
Contacts:
Spectris plc
Mathew Wootton
Investor Relations Director
+44 7500 078880
Teneo
Martin Robinson/Giles Kernick
+44 20 7353 4200
About Spectris
Spectris combines precision with purpose, delivering progress
for a more sustainable world. We provide critical insights to our
customers through premium precision measurement solutions combined
with technical expertise and deep domain knowledge. Precision is at
the heart of what we do - our leading, high-tech instruments and
software equip our customers to solve some of their greatest
challenges to make the world cleaner, healthier and more
productive. We are focused on two key divisions - Spectris
Scientific and Spectris Dynamics, which are placed in
technology-driven end markets, with strong fundamentals and
attractive growth trajectories. We have leading market positions in
premium segments and employ 7,500 people located in more than 30
countries, all united behind our purpose to deliver value beyond
measure for all our stakeholders. For more information, visit
www.spectris.com .
About HMS Networks
Headquartered in Sweden, with operations in 18 countries, HMS is
a world leader in industrial information and communication
technology providing a range of products that enable industrial
equipment to communicate and share information.
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END
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