Invensys sells Lambda for $235m (£134m)

Invensys sells Lambda for $235m (£134m)

Update on trading

Invensys plc announces that it has signed an agreement to sell its Lambda businesses ("Lambda") to TDK Corporation of Japan for a gross cash consideration of £134(1) million. Lambda comprises a 58.2% interest in Densei-Lambda KK, which is listed on the Tokyo Stock Exchange, and wholly-owned operations in Europe and North America.

Lambda is a leading manufacturer of power supplies and uninterruptible power supply systems, which are an important element in the supply, regulation and distribution of electrical power in electronic equipment.

In the year ended 31 March 2005, Lambda had sales of £229 million and operating profit of £11 million, before deduction of £8 million of operating exceptional charges. The gross assets of Lambda (including goodwill) subject to the disposal were £265 million at 31 March 2005 and the net assets (including goodwill) were £175 million. Invensys plc’s consolidated accounts contained a minority interest charge of £2 million and balance sheet minority interests of £65 million in respect of Densei-Lambda KK.

The transaction is subject to customary regulatory approvals and is expected to be completed on or before 30 September 2005. The proceeds from this disposal will be applied towards satisfying the Group’s liabilities.

Ulf Henriksson, Chief Executive Designate of Invensys plc, commented:

"This disposal is a further step in the Group’s previously stated plans for the divestiture of non-core businesses. I am delighted that TDK has acquired Lambda and I am confident that the business will prosper and grow under its ownership."

Invensys was advised by Nomura International and Morgan Stanley.

Update on trading

In advance of the Group’s Annual General Meeting on Thursday 21 July 2005, Invensys plc has today issued the following update on trading:

"The Group’s overall profit performance during the first quarter of the current financial year was in line with expectations and ahead of the corresponding period last year.

Process Systems achieved an increase in profitability as the benefits of its performance improvement programme continue to come through. Eurotherm was in line with last year. APV improved from the disappointing result in the first quarter of last year but there are still further operational efficiencies to be achieved. As expected, Rail Systems had a weaker quarter mainly due to the deferment of orders by Network Rail in prior periods; we continue to expect an upturn in orders later in the year. Also as expected, Controls had a weaker first quarter than last year because of the effects of the manufacturing problems in North America and the changing competitive environment in the white goods sector.

Looking at the remainder of the year, we continue to expect our performance to be in line with market expectations."

Contact
Invensys plc:

Steve Devany tel: +44 (0) 20 7821 3758

Maitland

Emma Burdett / Fiona Piper tel: +44 (0) 20 7379 5151

Note:
(1) Gross consideration of US$235 million converted at US$1.75/£1