Invensys sells Powerware for US$560m

Invensys sells Powerware for US$560m

Invensys plc announces that it has signed an agreement to sell its Powerware business to Eaton Corporation for a gross cash consideration of US$560 million. Proceeds from this disposal will be used to further reduce the Group’s debt and legacy liabilities.

Powerware is a leading global provider of comprehensive power quality and power management solutions, primarily serving the computer, telecoms, institutional and corporate data service industries. In the year ended 31 March 2003, the business reported sales of £463 million and operating profit1 of £23 million. The net operating assets of Powerware which are the subject of the disposal were £88 million at 31 March 2003 and goodwill at that date amounted to £507 million, of which £363 million had been written off to reserves.

The transaction is expected to complete by the end of June.

The sale of the Powerware business is conditional upon, among other things, the approval of Invensys Shareholders at an Extraordinary General Meeting. A circular will be sent to the Shareholders in due course setting out full details of the disposal and a notice of the Extraordinary General Meeting to consider and, if thought fit, to approve the disposal.

Chief Executive Rick Haythornthwaite said,

"Following our successful refinancing, the sale of Powerware is another step in the turnaround of Invensys and the strengthening of our balance sheet. Our focus now is very much on driving the growth and profitability of the businesses that we are retaining."

Notes:
1. Before exceptional items and goodwill amortisation, but after charging pension costs.

For more information please contact:

Invensys
Victoria Scarth / Mike Davies
+ 44 (0) 20 7821 3755

Brunswick
Nick Claydon / Mike Smith
+44 (0) 20 7404 5959

About Invensys plc
Invensys is a global automation, controls and process solutions Group. Our products, services, expertise and ongoing support enable intelligent systems to monitor and control processes in many different environments. The businesses within Invensys help customers in a variety of industries - including hydrocarbons, chemicals, oil and gas, power and utilities, rail, telecommunications, paper, food and beverage, dairy, pharmaceuticals and personal care - to perform with greater efficiency, safety and cost-effectiveness.

Process Systems (IPS) provides products, services and solutions for the automation and optimisation of plant operation in the process industries. Eurotherm is a leading supplier of control and measurement instrumentation solutions and services to industrial and process customers. APV specialises in process equipment engineered into systems and asset services for food, beverage, personal care, pharmaceutical and chemical clients. Rail Systems is a multinational leader in the design, manufacture, supply, installation, commissioning and maintenance of safety-related rail signalling and control systems. Climate Controls is a major provider of the components, systems and services used across the world to make commercial and residential environments safer, more comfortable and more efficient. Appliance Controls has the broadest system and component offering for the appliance industry worldwide.

The Invensys Group is headquartered in the UK and listed on the London Stock Exchange. With 39,000 employees operating in 60 countries, Invensys helps customers to improve their performance and profitability, building value for end users and shareholders alike.

About the Powerware business

The Powerware business is a leading global provider of comprehensive power quality and power management solutions, primarily serving the computer, telecommunications, financial, medical, government and corporate data service industries. Powerware’s installation, servicing, monitoring and control systems and services help to provide clean and continuous power through single phase uninterruptible power supply ("UPS direct current ("DC") systems and to all products in the power quality segment. Powerware has") and a diversified geographic customer base, offering its products and services in the Americas, Europe and the Asia Pacific region.

Powerware is headquartered in Raleigh, North Carolina and operates 10 manufacturing facilities worldwide.