Cicor acquires business units from TT Electronics
Cicor has signed an agreement to acquire TT Electronics IoT Solutions Ltd, with three production sites in the UK and China, from TT Electronics for GBP 20.8 million.
With the combination of the sites acquired from TT Electronics and the Cicor companies Axis Electronics and STS Defence, Cicor aims to become a European powerhouse in the production of high-end electronics for aerospace and defence applications.
With this transaction, Cicor has taken another step forward in implementing its strategy to become a European leader in electronics manufacturing services for medical technology, industry, aerospace and defence, a press release from the Swiss company reads.
TT Electronics IoT Solutions Ltd employs more than 500 people at its sites in Hartlepool and Newport in the UK and Dongguan in China and has a total production area of around 25,000 square meters.
In the last financial year, sales of GBP 70.2 million were achieved by the acquired entities with a mid-single-digit operating margin. Cicor says that the acquired production sites provide much-needed growth reserves for local production in the UK. The successful production site in Dongguan will be integrated into the Cicor Group's Asian production network.
The price tag for these three business units is GBP 20.8 million and the transaction is expected to close in the first quarter of 2024.
TT says that the company is divesting the business units to simplify its operational footprint.
"We are focused on being a more profitable and resilient business underpinned by a strong balance sheet and operating in attractive growth markets," Peter France, TT Chief Executive Officer, said in an RNS announcement.
