Selling antennas

, the UK-based designer and manufacturer of microwave electronic subsystems for the wireless telecommunications and defence industries, is to sell its mobile handset antenna business, LK Products, to electrical components vendor Technitrol for around 67 million Euros or $82.8 million.

In addition, the terms of the purchase include a revenue-based deferred consideration whereby Technitrol will pay Filtronic one Euro for each Euro of revenue in excess of 85 million Euros achieved by LK for the 12 months ending 31 May 2006.

LK has an estimated global market share of about 16%. It is based in Kempele, Finland and has additional production operations in China and Hungary, with offices in South Korea and San Diego, California.

LK contributed 17%, or £50 million, of Filtronic’s total group sales of £262.9 million in its financial year ended 31 May 2005 and made an operating profit of £3.6 million.