Delta Magnets Buys TT Electronics Units to Expand into Global Market

From: investinuk
Published: Mon Jul 05 2010

For a cumulative consideration of £1.7 million, Delta Magnets Ltd announced that it had successfully purchased the UK based company MMG Magdev Ltd and the Chennai based MMG India Pvt Ltd. The investment will see Delta Magnets Ltd takeover the two firms from TT Electronics, a British electronic components supplier.

TT Electronics’ sale of its two business units comes in an effort to cut down its debt, while for Delta, it enhances its manufacturing capacity and expands its global reach into new places in Europe, US and the UK, in a addition to a ready market for its existing products range.

TT Electronics now expects its first half results to be in line with its expectations. Previously, the British firm had sold off its South African unit, Wire Systems Technology, in May and subsequently used the accrued funds from the sale to reduce its net debt that peaked at £54.6 million, a fall from the £56.9 million at the start of 2010. According to the company, the enhancement in trading had picked up in the first four months of 2010 with sales ahead of last year’s period across all divisions. Shares of TT Electronics, which supplies components to manufacturers in the defense, aerospace, medical and automotive markets, closed at 96.25 pence Thursday on the London Stock Exchange.

Delta Magnets Ltd, in a statement said its board had approved the acquisition of 100% stake in MMG Magdev Ltd and Chennai’s MMG India Pvt Ltd, but did not disclose the details of the deal. The investment in the two companies will, additionally, help bolster Delta Magnets presence for magnets domestically, as well as in the global market. Delta Magnets manufactures arc, ring and hard ferrite permanent magnets, which are used in the automotive and other industries. The Mumbai based company also manufactures and supplies magnet powder used in various applications. It serves companies in consumer electronics, engineering, telecommunication and power sector. The company reported a turnover of Rs.8 Cr in 2008/2009 with net loss of Rs.1.2 Cr for the same period.

UK-based TT Electronics Plc is engaged in design, manufacture, and sale of electronic and electrical components to companies in defense, aerospace, medical, automotive, telecom, and other industrial electronics sector with operations through five segments: components, sensors, integrated manufacturing services, secure power, and general industrial. TT Electronics acquired MMG India in July 1997, in the name of Neosid India Pvt Ltd and later renamed it as MMG India Pvt Ltd.

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