22 February 2017
Morgan Advanced Materials announces sale of its UK Electro-Ceramics business to CeramTec
Morgan Advanced Materials plc ("Morgan") announces today that it has agreed the sale of its UK Electro-Ceramics business ("UK Electro-Ceramics"), comprising two sites at Ruabon and Southampton, to CeramTec UK Limited, a fully owned subsidiary of CeramTec GmbH. The transaction is structured as a sale of the business, assets and goodwill for a consideration of £47m on a cash-free, debt-free basis, payable in cash at completion, subject to customary closing working capital adjustments.
In the year ended 31 December 2016, UK Electro-Ceramics generated an operating profit of £6.2m on revenues of £22.7m. Gross assets at 31 December 2016 were £7.0m.
The divestment is in line with Morgan's strategy to simplify its portfolio and focus on global technology businesses of scale. The proceeds from the sale will be used for re-investment in the core business.
The UK Electro-Ceramics business produces a range of piezo and dielectric ceramic products used in a wide range of industrial, electronics, medical and defence applications. It forms part of the Technical Ceramics Global Business Unit of Morgan.
Pete Raby, Chief Executive Officer of Morgan, said:
"I am pleased to announce the sale of UK Electro-Ceramics. This divestment supports our aim of simplifying Morgan to focus on technology businesses of scale, allowing us to better service global markets and to drive the most value from our core activities. UK Electro-Ceramics is a specialist business with excellent customer relationships. This transaction will build its scale and combine its expertise with that of CeramTec, creating a stronger and more resilient platform for the future."
Henri Steinmetz, Chief Executive Officer of CeramTec, said:
"We are excited by the prospect of bringing together the significant expertise and knowledge in piezo and dielectric ceramics which complement each other perfectly. This transaction opens the door to many new opportunities and possibilities for CeramTec: new markets, new application areas, and new developments. Together, we are stronger and we will be able to offer our customers an even broader spectrum of products and applications. The significant demand for sensors and measurement technology as well as control and monitoring systems provides the best opportunities for a successful future."
This announcement contains Inside Information in relation to Morgan Advanced Materials plc.
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Notes to Editors:
Morgan Advanced Materials
Morgan is a global materials technology company which designs and manufactures a wide range of high specification products with extraordinary properties, across multiple sectors and geographies.
From an extensive range of advanced materials, it produces components, assemblies and systems that deliver significantly enhanced performance for its customers' products and processes. Its engineered solutions are produced to very high tolerances and many are designed for use in extreme environments.
The Company thrives on breakthrough innovation. Its materials scientists and applications engineers, work in close collaboration with customers to create outstanding, highly differentiated products that perform more efficiently, more reliably and for longer.
Morgan has a global presence with approximately 9,000 employees across 50 countries serving specialist markets in the energy, transport, healthcare, electronics, security and defence, petrochemical and industrial sectors. It is listed on the London Stock Exchange in the engineering sector (ticker MGAM).
For more information on Morgan visit: www.morganadvancedmaterials.com
UK Electro-Ceramics business
The UK Electro-Ceramics business is a manufacturer of highly specialised piezoelectric and dielectric components that enhance the reliability and performance of customers' products in the most technically challenging applications. The business is focused on the Lead Zirconate Titanate ('PZT') and dielectric market and has the widest range of products available for polycrystalline piezo and dielectric applications across core target markets.
CeramTec
CeramTec is a large international manufacturer of ceramics for technically demanding applications. The company supplies its customers with premium quality ceramic products from sites across the globe and is headquartered in Plochingen, Germany. CeramTec products are often unseen, but always indispensable. The products are used in many different applications today, especially in medical engineering, automotive manufacturing, electronics, equipment and mechanical engineering, defense systems, energy and environmental technologies, and in chemical industries. The company's success is rooted in the formula: Continued development of new, innovative materials with a strong commitment to quality, a focus on customer-specific systems solutions and dialog-based application consulting services that cover the entire product life cycle. The company has around 3,200 employees worldwide and achieved revenues of approximately €501 million in 2015. CeramTec is a portfolio company of Cinven.
For more information visit: www.ceramtec.com
Enquiries:
Pete Raby/Peter Turner |
Morgan Advanced Materials |
01753 837 000 |
Mike Smith/Alison Kay |
Brunswick Group LLP |
0207 404 5959 |
