TT Electronics acquires US based EMS

This acquisition complements the group's existing EMS facilities in China, the UK and Malaysia and establishes TT electronics with EMS operations in all its major geographical markets. The purchase consideration is £14.9 million for gross assets of £13.5 million as at 31 December 2005. In the year ended 31 December 2005, Apsco reported pre tax profits of £1.9 million on sales of £28.5 million. The net asset value at 31 December 2005 was £9.6 million. A deferred consideration of up to a maximum of £1.0 million is payable, subject to certain performance criteria. Apsco has been acquired debt free from Morgenthaler Partners. The whole of the consideration is payable in cash using the group's existing resources. The majority of Apsco's revenues are from major customers with long term relationships and it has well established positions in the office machine, industrial, medical, defence and communication markets. The company offers a full range of services with a focus on supplying added value services including prototype development, testing, box build, in-house coating, encapsulation and total product life cycle management.