Premier Farnell has announced that, together with its wholly owned subsidiaries, Celdis Limited and Premier Farnell Corp, it has entered into a conditional agreement to sell Akron Brass Holding Corp. to IDEX Corporation for $224.2m
In a statement, Leeds-based Premier Farnell said: “The disposal will enable further focus on executing the initiatives identified as part of its operational review to restore growth in profitability in FY17 and provide increased financial flexibility to pursue growth opportunities within the core electronics distribution business. Net cash proceeds arising from the disposal will be used to reduce Premier Farnell’s existing indebtedness and to redeem its preference shares.”
Mark Whiteling, Premier Farnell interim chief executive, said: “Following the completion of the operational review and the conclusions announced in December 2015, the sale of Akron Brass marks the next important milestone in the strategic refocusing of Premier Farnell.
“The review confirmed that there are significant opportunities to improve the operational and financial performance of Premier Farnell. The sale of Akron Brass will enable us to focus on executing the initiatives identified as part of our review in order to restore growth in profitability in FY17.”
Following the year end on 31 January, the company’s full year 2016 (FY16) profit outcome is expected to be broadly in line with recent guidance, the company said.
Lazard & Co.is acting as lead financial adviser in relation to the disposal. Barclays Bank, acting through its investment bank, is acting as sponsor and financial adviser to Premier Farnell in relation to the disposal