Today, Ultra Electronics announced the sale of its business, Airport Systems, to ADB SAFEGATE. The £22m divestment includes a deferred payment of £2m, which will be made post transfer of certain commercial contracts. Ultra will retain the sale proceeds for general corporate purposes. The deal is expected to end by 31 January 2019.
Airport Systems posted an operating profit of £3.2m on a revenue of £18.9m and had £7.2m in gross assets for the year ended 31 December 2017. The divestment is anticipated to marginally dilute the earnings for the year ending 31 December 2019.
Ultra will either write down a goodwill or account a loss on the disposal of nearly £8m, depending on the time of completion of the deal. Additional details are expected to be provided in the Group’s 2018 Annual Report & Accounts.
Simon Pryce, CEO of Ultra, commented: “Although Airport Systems has been a part of Ultra for some time, it has little customer, process or technology commonality with the rest of the Group. As part of our focus on long term sustainable value creation and after conducting an appropriate process, we have therefore concluded that a sale of Airport Systems to ADB SAFEGATE is the best long term solution for Airport Systems customers, employees and other stakeholders and represents good value for Ultra.”