Morgan Advanced Materials plc recently announced that it has agreed to the sale of its UK Electro-Ceramics business, comprising two sites at Ruabon and Southampton, to CeramTec UK Ltd., a fully owned subsidiary of CeramTec GmbH. The transaction is structured as a sale of the business, assets and goodwill for a consideration of £47 million (approximately $58 million) on a cash-free, debt-free basis, payable in cash at completion, subject to customary closing working capital adjustments. In 2016, UK Electro-Ceramics generated an operating profit of £6.2 million (~ $7.7 million) on revenues of £22.7 million (~ $28 million).

The UK Electro-Ceramics business produces a range of piezo and dielectric ceramic products used in a wide range of industrial, electronics, medical and defense applications. It forms part of the Technical Ceramics Global Business Unit of Morgan. The divestment is in line with Morgan’s strategy to simplify its portfolio and focus on global technology businesses of scale. The proceeds from the sale will be used for re-investment in the core business.

“I am pleased to announce the sale of UK Electro-Ceramics,” said Pete Raby, Morgan’s CEO. “This divestment supports our aim of simplifying Morgan to focus on technology businesses of scale, allowing us to better service global markets and to drive the most value from our core activities. UK Electro-Ceramics is a specialist business with excellent customer relationships. This transaction will build its scale and combine its expertise with that of CeramTec, creating a stronger and more resilient platform for the future.”

According to Henri Steinmetz, CEO of CeramTec, “We are excited by the prospect of bringing together the significant expertise and knowledge in piezo and dielectric ceramics, which complement each other perfectly. This transaction opens the door to many new opportunities and possibilities for CeramTec: new markets, new application areas, and new developments. Together, we are stronger and we will be able to offer our customers an even broader spectrum of products and applications. The significant demand for sensors and measurement technology, as well as control and monitoring systems, provides the best opportunities for a successful future.”

For more information, visit www.morganadvancedmaterials.com or www.ceramtec.com.