Invensys is to sell its Invensys Sensor Systems business to Honeywell for a net cash consideration of $394m, representing a gross consideration of $415m less certain retained liabilities and transaction costs.
Invensys Sensor Systems is a supplier of sensors and controls that are used in the vehicle, appliance, office automation, medical, aerospace and HVAC industries.
For the twelve months ending March 31, 2002, the business generated revenues of $251m and operating profit of $36m. Net assets which are the subject of the transaction are approximately $135m. Goodwill written off to reserves relating to historic acquisitions for the Sensor Systems business amounts to approximately $205m.
Rick Haythornthwaite, CEO of Invensys, said: ‘We are pleased with the speed at which we have achieved this divestiture, which brings proceeds to date on our disposal programme to over £900 million.’
The transaction is subject to customary regulatory approvals and is expected to complete by the end of September 2002.