Invensys plc announced today that it has signed an agreement to sell its metering business to IMS Meters Holdings Inc for a gross cash consideration of £388 million.
According to Invensys, the metering business is a leader in advanced metering and communications solutions for the worldwide utility industry. The business reported sales of £329 million and operating profit of £44 million in the year ended 31 March 2003.
The net operating assets of the metering business, which are the subject of the disposal, were £59 million at 31 March 2003.
The sale of the metering business is said to be consistent with the decision announced by the Board of Invensys on 15 April 2003 to simplify the Group’s structure by narrowing its focus to Production Management whilst also continuing to develop its Rail Systems business. All other businesses will be divested, either partially or wholly, in order to secure a greater level of financial stability for Invensys.
The transaction is expected to complete by the end of the calendar year 2003 and is conditional upon, among other things, the approval of Invensys Shareholders at an Extraordinary General Meeting and the completion of financing by the purchaser.
Chief Executive of Invensys, Rick Haythornthwaite, said: ‘The early results of our disposal programme have been mixed: whilst the outcome for Baan and Teccor exceeded expectations, the price obtained for this, the first of our four larger businesses for disposal, was at the lower end of estimates.
‘Nevertheless, we are continuing to make progress in dealing with our liabilities.’