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On 29 July 2024, Dialight plc announced it entered into an agreement to sell its North American Traffic Business to Leotek Electronics USA LLC for gross cash proceeds of $5.8 million. The transaction yielded net cash proceeds of $5.5 million after costs, with the business having a gross asset value of $nil and generating $nil profit in the twelve months to 31 December 2023. Dialight will use the net proceeds to reduce group indebtedness and will manufacture products under licence for the acquirer for up to 15 months.
| Date | 29 Jul 2024 |
| Time | 07:00:08 |
| Category | Disposals |
| ID | 1738Y |
Dialight plc
("Dialight" or the "Group")
Non-core disposal
29 July 2024
Dialight plc (LSE: DIA.L), a global leader in LED lighting for heavy industrial applications, today announces that it has entered into an agreement for the sale of its business manufacturing signal lights used in traffic, pedestrian and railroad management in North America (the Traffic Business) to Leotek Electronics USA LLC and realising gross cash proceeds of $5.8m. After transaction and other costs, net cash proceeds are $5.5m which will be used to reduce group indebtedness.
The Business had previously been identified as non-core.
The gross value of assets sold is $nil and profits attributable to the Business in the twelve-month period to 31 December 2023 of $nil.
Dialight will continue to manufacture products under licence for the acquirer for a period of up to 15 months from the completion date. Thereafter, the transaction will allow Dialight to focus management and production capacity on its core activities.
Contacts:
Dialight plc
Tel: +44 (0)203 058 3542
Steve Blair, CEO
Carolyn Zhang, CFO
About Dialight:
Dialight (LSE: DIA.L) is a global leader in sustainable LED lighting for industrial applications. Dialight's LED products are providing the next generation of lighting solutions that deliver reduced energy consumption and create a safer working environment. Our products are specifically designed to provide superior operational performance, reliability, and durability, reducing energy consumption and ongoing maintenance, and achieving a rapid return on investment. The company is headquartered in the UK, with the main operations in the USA, UK, Mexico, Malaysia and Singapore, Australia. To find out more about Dialight, visit www.dialight.com.