HILADELPHIA--(BUSINESS WIRE)--Technitrol (NYSE:TNL) today announced the completion of its divestiture
of the remaining operations of its Electrical Contact Products Group
(AMI Doduco) to Tinicum Capital Partners II, L.P. (Tinicum), JP Asia
Capital Partners and affiliates including members of the AMI Doduco
management team. The sale price was approximately EUR 33 million in
cash, subject to normal working capital adjustments and other financial
adjustments.
“This transaction is an important step in the execution of our strategy
to focus on electronic components and capture the strong growth
opportunities in the network and wireless communication industries”
AMI Doduco designs and manufactures electrical contact materials, parts
and assemblies, as well as refines silver and other precious metals. It
has factories in Pforzheim and Sinsheim, Germany; Madrid, Spain;
Tianjin, China; and Mexico City, Mexico.
Going forward Technitrol will focus solely on its Electronic Components
Group (Pulse), which produces a variety of components and modules used
in network infrastructure and customer premise equipment; wireless
handsets and other terminal devices; and power management, military,
aerospace and automotive applications.
Net proceeds from the transaction, after funding related retirement plan
obligations and transactions costs, were approximately $39 million,
which exceeded the Company???s previous expectation primarily due to
better-than expected working capital adjustments and higher cash
balances. The net proceeds will be applied to reduce Technitrol???s
outstanding bank debt. In addition, the sale eliminated commitments
under precious metal consignment leases, which totaled approximately $83
million at the end of the second quarter of 2010.
???This transaction is an important step in the execution of our strategy
to focus on electronic components and capture the strong growth
opportunities in the network and wireless communication industries,???
said, Technitrol interim chief executive officer Drew Moyer. ???We are now
a pure-play electronic components manufacturer with a stronger balance
sheet and a significantly sharper operational focus.???
About Tinicum
Tinicum Capital Partners II, L.P. was formed in May 2004 and together
with its affiliated funds has committed capital of $1.325
billion.??Tinicum???s investors are predominantly individuals and families.
Tinicum and its principals have a longstanding history (dating from the
1950s) of investing in industrial businesses, including electrical
equipment manufacturers ITE Circuit Breaker Company and Challenger
Electrical Equipment Corporation.
About Technitrol
Technitrol is a worldwide producer of electronic components for
manufacturers in the wireless and wireline communications,
military/aerospace and automotive industries. For more information,
visit Technitrol's web site at http://www.technitrol.com.
This release contains statements that are ???forward-looking??? within
the meaning of the Private Securities Litigation Reform Act of 1995 and
involve a number of risks and uncertainties. Actual results may differ
materially due to the risk factors listed from time to time in
Technitrol???s SEC reports including, but not limited to, those discussed
in the company???s Form 10-Q for the quarter ended June 25, 2010 in Item
1a under the caption ???Factors That May Affect Our Future Results
(Cautionary Statements for Purposes of the ???Safe Harbor??? Provisions of
the Private Securities Litigation Reform Act of 1995).??? All such risk
factors are incorporated into this report by reference as though set
forth in full. This report should be read in conjunction with Item 1a of
the Form 10-Q report.
Copyright ?? 2010 Technitrol, Inc. All rights reserved. All brand
names and trademarks are properties of their respective holders.