Invensys cheered investors with news of the sale of its power supply systems business.
Shares in the former FTSE 100 Index company formed from the merger of BTR and Siebe rose in early trading yesterday after it said it was disposing of its Lambda power division to Japanese group TDK Corporation for £135 million.
California-based Lambda makes power supplies and uninterruptible power supply systems, a key element in the supply, regulation and distribution of electrical power in electronic equipment.
Invensys said the disposal represented another step in its plans to sell off non-core businesses.
It has gone through a debt restructuring and disposal process that has left it with businesses including process systems, Eurotherm, APV, Rail Systems, climate controls and appliance controls.
Chief executive designate Ulf Henriksson said: "I am delighted that TDK has acquired Lambda and I'm confident the business will prosper and grow under its ownership."
Invensys supplies equipment and computer software to the oil and gas, power and utilities, chemicals, rail, food and drinks, healthcare and data communications industries among others.
Other customers include Bayer, China Light and Power, EDF Energy, Kraft, Danone, Arla Foods, SABMiller, Schering-Plough, Pilkington Glass, Corus, Network Rail and Bombardier.
The group employs 39,000 people in 60 countries including the UK, where sites include Birmingham, Bognor Regis, Chippenham, Crawley, Croydon, Glasgow, Magherafelt in Northern Ireland, Plymouth and Stockport.
In the year to March 31, Lambda, which has a UK operation at Ilfracombe, Devon, had sales of £229 million and operating profits of £11 million, before £8 million of operating exceptional charges.
The business consists of a 58.2 per cent stake in Densei-Lambda, which is listed on the Tokyo stock exchange, and wholly owned operations in Europe and North America.
The deal is subject to regulatory approval and should be completed on or before September 30. Invensys also said yesterday that overall profits in the first quarter of the current year were in line with expectations and up on the same period last year.
