Invensys, an international production technology and energy management group, has agreed to sell its Fasco Motors business to Tecumseh Products for a cash consideration of $415 million. The sale proceeds will be used by Invensys to continue to reduce its level of debt.
When this sale has completed, Invensys will have generated proceeds of over £1.8 billion ($2.8 billion) from its disposal programme, which is said to be well ahead of targeted proceeds of £1.5 billion and four months ahead of schedule. Net debt will be reduced as a result from £3.3 billion a year ago to £1.5 billion on a proforma basis.
On 26 November Invensys announced the completion of the sale of Rexnord and Drive Systems for over $1 billion; these, together with the completed sale of Sensor Systems in October for $394 million, have resulted in the generation of $1.4 billion in the last six weeks. The Flow Control and Air Systems businesses were sold in May and June.
Fasco Motors designs, manufactures and tests fractional horsepower motors, blowers and gearmotors for a range of customers and applications in HVAC, automotive, healthcare, appliance and other industries.
For the twelve months ended 30 September 2002, the business generated revenues of $467 million and an operating profit of $60 million. Net assets, which are the subject of the transaction, are approximately $205 million.
The sale is subject to customary regulatory approvals and other usual conditions and is expected to complete early in 2003.