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© stadium group Electronics Production | February 22, 2018

TT Electronics to acquire Stadium Group

The boards of Stadium Group and TT Electronics have reached an agreement under which TT will acquire the entire issued and to be issued share capital of Stadium.
TT will offer Stadium’s shareholders GBP 1.20 per share, which values the entire issued share capital of Stadium at approximately GBP 45.8 million (about EUR 51.81 million), the companies state in a release.

This will be the first acquisition by TT following its divestment of its Transportation Sensing and Control Division in 2017. The planned acquisition follows TT's stated strategy to focus on areas of structural growth where there is increased electronic content and greater product differentiation.

With the addition of Stadium, TT will enhance its portfolio and capabilities as well as strengthen its position in certain sectors where demand for electronics is growing quickly. To name a few the company will get a greater presence in the industrial, medical, aerospace and defence and transportation sectors. Not to mention that the company will receive enhanced product capabilities in power electronics and connectivity, adding more scale to the businesses of both TT and Stadium.

"The acquisition of Stadium is an important step to accelerate our strategy of building leading positions in sectors where increasing electrification is fuelling demand for our highly engineered electronic solutions,” says Richard Tyson, CEO of TT.We look forward to welcoming Stadium's employees and combining power electronics capabilities and R&D expertise to drive growth for the combined business. Stadium will add complementary technologies including connectivity offerings, in industries we already know well."

"On behalf of the Stadium Board, I can confirm the recommendation of the Stadium Directors in favour of TT's cash offer for Stadium. The Stadium Board's strategy in transitioning the company to a design-led technology business with a focus on wireless connectivity, power and interface and displays has been successful and is now entering the next phase of growth. We believe that the offer from TT represents an attractive and certain value in cash today for Stadium Shareholders, reflecting the high quality of the business, its people and future prospects,” commented Nick Brayshaw, Chairman of Stadium.

TT Electronics says that in order to achieve the expected benefits of the transaction, some operational and administrative restructuring of Stadium will be required.

“In addition to the integration of the overlapping offices of Stadium and TT in North America, there will no longer be a requirement for the planned expansion of Stadium's North American sales and operations footprint,” the announcement reads.

As of to date, no proposals have yet to be finalised as to how and where such headcount reductions will be implemented. However, the company expects overall job reductions related to the current Stadium workforce to be less than 3% of Stadium's total headcount.

The timing and magnitude of workforce reductions and eventual office closures remain subject to a number of factors including overall market conditions. The companies will initiate a more detailed review, which is targeted to be completed in the first 12 months of ownership, will provide more information on how to more forward.

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September 25 2018 7:10 pm V11.1.0-2