Teledyne completes £627m e2v acquisition
US-based Teledyne Technologies has completed its £627 million cash acquisition of British firm e2v. The purchase was first announced in December 2016.
The value of the transaction, excluding transaction costs, takes into account e2v’s stock options and net debt as of September 2016. Excluding transaction-related expenses, Teledyne management expects the transaction to be accretive to earnings per share.
‘Every business within e2v is highly complementary to Teledyne and will contribute to our balanced portfolio of highly engineered products,’ commented Robert Mehrabian, chairman, president and CEO of Teledyne. ‘From industrial machine vision to space-based imaging, microwave devices spanning radar to radiotherapy, and specialty semiconductors through micro electro-mechanical systems, our respective capabilities and engineering-centric cultures are truly a great fit.
‘We are proud to continue e2v’s 70-year legacy of innovation and specialised high technology products. In addition, e2v adds greater critical mass and technical resources to Teledyne in key locations, including the United Kingdom; Grenoble, France; and Seville, Spain.’
E2v employs approximately 1,750 people and has annual sales of £236 million. It supplies RF power, imaging, and semiconductor solutions, serving markets including aerospace, security, defence, space, medical and science, and industrial.
‘We have followed e2v for more than a decade. Over time, as both Teledyne and e2v evolved, our businesses have become increasingly aligned.’ Mehrabian commented back when the acquisition was initially announced. ‘In fact, every business within e2v is highly complementary to Teledyne. As important, there is minimal product overlap. For example, we are both leaders in space and astronomy imaging, but Teledyne largely provides infrared detectors and e2v provides visible light sensors.’
Teledyne supplies sophisticated instrumentation, digital imaging products and software, aerospace and defence electronics, and engineered systems. The company’s operations are primarily located in the United States, Canada, the United Kingdom, and Western and Northern Europe.
Teledyne's total sales fell 6.2 per cent in 2016 to $2,139.8 million; its net income from continuing operations reduced 2.6 per cent to $192.9 million for the fiscal year 2016.
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