Listed electronics manufacturer agrees to sell off its antenna operations for £4.2m
Filtronic, a Shipley-based designer and manufacturer of microwave electronics products, has today agreed to sell of its Telecoms Antenna Operations to Microdata Telecom Innovation Stockholm AB.
The sale will complete on 2 January 2020 for an initial cash consideration of $5.5m (£4.2m) on a cash free-debt free basis. There will be a further potential deferred consideration, where Filtronic will take an equal share of the gross profit that outperforms the mutually agreed gross profit targets of $2.0m and $3.0m for the Telecoms Antenna Operation over the next two calendar years.
The company announced its intention to sell its Telecoms Antenna Operations in September, following a strategic review.
The sale comprises the entire share capital of Filtronic Wireless AB in Sweden and certain antenna manufacturing assets held by Filtronic’s Chinese subsidiary. Net assets held for sale at 31 May 2019 were £2.8m, while the operating loss before exceptional items in the year ending 31 May 2019 was £1.9m.
A Filtronic spokesman said: “This represents an important step forward for Filtronic and the sale proceeds will be used to further develop and grow our continuing businesses comprising 5G/X-Haul, public safety communications and defence and aerospace, all areas where we see continued long term potential to exploit our core strengths.
“Over the first half of the current financial year, we have made substantial investments in our manufacturing and engineering capacity and capability in order to capitalise on a strong and extended order book and further market opportunities.
“The proceeds from the sale will enable us to continue our investment programme and provide the resources to invest in new opportunities in our core growth markets where we can differentiate ourselves.”
Reg Gott, executive chairman, said: “I am delighted to confirm we have signed an agreement with Microdata Telecom to purchase our Telecoms Antenna Operations.
“The sale strengthens our balance sheet, simplifies our business, and enables us to focus on business activities that better suit our core strengths.
“Microdata Telecom is an ambitious and rapidly growing company with a strong wireless telecoms pedigree. Being based in Taby, Sweden, it is well known to our Telecoms Antenna Operations and is an excellent destination for our staff, customers and products.”
Corporate finance advice to Filtronic was provided by EY’s North corporate finance team based in its Manchester office, led by Mark Clephan and Louise Leung, supported by Stephen McGuinness and Mark Fruish.
Legal advice in the UK was provided by Pinsent Masons (led by Rob Hutchings) and in Sweden by Roschier (led by Christoffer Benninge).
