Invensys is to sell its Lambda power supply business to TDK of Japan for £134 million. The proceeds from the sale will be use to reducing the liabilities of the Invensys Group.
The Lambda division consists of Lambda USA, Lambda Europe, Densei-Lambda and and conducts business in 13 countries around the world. The division has bases in the US, Canada, the UK, Germany, France, Italy and Sweden. Densei-Lambda operates in Japan, Israel, China, Malaysia, Singapore and Thailand. In the year ending March 31 2005, the division had sales of £229 million and operating profit of £11 million.
The deal is subject to customary regulatory approvals and is expected to be completed on or before 30 September 2005.
"This disposal is a further step in the Group’s previously stated plans for the divestiture of non-core businesses," said Ulf Henriksson, Chief Executive Designate of Invensys.
Last month, Invensys signed an agreement to sell the majority of its Advanced Building Systems operations in Europe and the Middle East to Schneider Electric of France for £81 million.