(July 29, 2010) — Teledyne Technologies Incorporated (NYSE: TDY) has completed the acquisition of Intelek plc (AIM: ITK.L). Teledyne was the beneficial owner of, or had received valid acceptances in respect of approximately 93% of Intelek’s ordinary shares.
Teledyne declared its offer to Intelek shareholders wholly unconditional, as all closing conditions of its offer had been satisfied or waived. Under the terms of the Offer, Intelek’s ordinary shareholders will receive 32 pence in cash for each Intelek Share valuing the entire existing issued ordinary share capital of Intelek at approximately £28 million.
Intelek is a group of companies that primarily design and manufacture electronic systems for satellite and microwave communication. Through its Paradise Datacom division, Intelek designs and manufactures satellite modems, transceivers, block up-converters, solid state power amplifiers, low noise amplifiers and associated equipment for the terrestrial segment of the satellite communications market. Intelek’s Labtech division is a manufacturer of microwave circuits and components primarily for the defense electronics, global telecommunications, space and satellite communications markets. Intelek’s CML Group division manufactures precision machined and composite aerostructures for military and commercial aircraft. Following the acquisition, the three divisions will change their names to Teledyne Paradise Datacom, Teledyne Labtech and Teledyne CML Group.
The aggregate value for the transaction will be approximately £35 million (or approximately $52 million) taking into account Intelek’s stock options, net debt and pension deficit as of March 31, 2010. For the year ended March 31, 2010, Intelek had sales of approximately £38 million.
On July 29, Teledyne reported second quarter 2010 sales of $442.5 million, compared with sales of $441.1 million for the same period of 2009. Net income for the second quarter of 2010 was $28.6 million ($0.78 per diluted share), compared with net income of $25.2 million ($0.69 per diluted share) for the second quarter of 2009.
“Our commercial businesses continued to recover nicely in the quarter,” said Robert Mehrabian, chairman, president and chief executive officer. "Our Electronics and Communications segment performed well as a result of double-digit sales growth and margin improvement in our commercial electronic instrumentation businesses. Our commercial aerospace businesses also performed strongly with increased sales and improved margins."
Teledyne Technologies provides sophisticated electronic subsystems, instrumentation and communication products, engineered systems, aerospace engines, and energy and power generation systems. Teledyne Technologies’ operations are primarily located in the United States, the United Kingdom and Mexico. For more information, visit Teledyne Technologies’ website at www.teledyne.com.
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