Emerson buys Solartron Mobrey for GBP26M

Emerson Process Management, an operating unit of Emerson USA, has reached agreement with Roxboro Group plc in the UK to buy Solartron Mobrey for a sum of GBP26Million

A recent statement on the Solartron Mobrey website reports that "Emerson Process Management, one of the world's leading suppliers of process automation and a group of Emerson Electric Company, has reached agreement with our parent company, The Roxboro Group plc, to buy Solartron Mobrey.

The transaction requires approval from the shareholders of Roxboro, and as such a shareholder meeting will take place in the week of the 11th July 2005 immediately after which completion will take place.

Emerson is acquiring Mobrey because of the strong position of the Mobrey brand in the global level market and the market-leading Solartron density, viscosity and flow computer products.

Our comprehensive product and service portfolio complements their existing instrumentation product lines of pressure, flow and temperature.

As such, the combined portfolio is a world beating instrument offering.

Further information will be added to our website once the acquisition has been completed".

The Roxboro official announcement stated the following.

The Roxboro Group plc, the international specialist electronics group, announces the proposed disposal of Mobrey, its process measurement and control equipment business, to Emerson.

Highlights.

* Disposal of Mobrey to Emerson for GBP26.0 million payable in cash by Emerson at Completion.

* Profit after expenses and taxation on the Disposal of approximately GBP2.4 million on a pro forma basis.

* Mobrey is active in the design and manufacture of process measurement and control equipment and offers a single-source supply for an extensive range of level, flow, pressure density, viscosity, suspended solid and data acquisition measurement devices.

* The Board has concluded that Mobrey's technology and market positions would benefit from being part of a larger global group focused on the process instrumentation sector.

Consequently, the Board initiated a process which has culminated in the recommended Disposal.

* The Disposal does not include the trade and assets of the Analytical Product Line which are being retained by Roxboro within the Continuing Solartron Group.

* The Disposal is conditional, inter alia, on the approval of Roxboro's Ordinary Shareholders which will be sought at an EGM to be held in July 2005.

* Following Completion, the Board will continue to review the Continuing Group's capital requirements with a view to proposing a return of cash to Ordinary Shareholders within a reasonable period.

The Board will make further announcements with its proposals when appropriate.

Commenting on the Disposal, Harry Tee, Roxboro's Chief Executive, said: "I am very pleased to be announcing this disposal today as it forms part of the Group strategy of becoming more focused and of generating shareholder value.

Mobrey is a high quality business producing "best-of-breed" products but its further development would be best served as part of a larger global group.

Roxboro will now comprise the retained Solartron high-margin businesses, focused on niche measurement sectors, together with Dialight, our growing electronic lighting division.

Dialight has exciting potential and performed well in 2004 with operating profits increasing five-fold.

Solid state lighting has many clear advantages over traditional lighting and as such the number of applications and demand for advanced solid state lighting products is expected to continue to show good growth.".

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