Ascom Sells Energy Systems to Delta Electronics
Ascom Energy Systems AG (Switzerland) has agreed to sell its Energy Systems Business Unit along with the associated companies and assets to Delta Electronics (Thailand) Public Co. Ltd. (Taiwan) for a net cash consideration of approximately CHF150 million plus the assumption of certain long-term liabilities amounting to approximately CHF30 million by Delta.
With the sale of the Energy Systems Unit, Ascom's management has taken a major step in the implementation of its June 2002 decision to focus the group on a few core markets with good growth potential and profitability as well as low capital intensity. The divestment will allow Ascom to further reduce debts and will result in a sustainable streamlining of the balance sheet structure. The Energy Systems Business Unit complements the offerings and global presence of Delta Electronics. The transaction, subject to the usual regulatory clearances, is targeted for completion by the end of June 2003. The final purchase price will be determinded at closing.
"The successful divestment of Energy Systems will allow Ascom to strengthen the balance sheet. We can now concentrate our resources on expanding our core markets," stated Ascom Chairman and CEO Juhani Anttila. "In a difficult market Ascom management has succeeded in finding a strong, well-known, industry leader as a partner, and a forward-looking solution that addresses the interests of the Energy Systems Business Unit, its customers, employees and partner companies."
"The acquisition of Ascom Energy Systems marks a significant step forward in Delta’s ability to offer complex, high-power solutions to its customers, and provides Delta with a broader product portfolio and a strong position in the European market. The combination of Ascom Energy Systems research and development capability, strong European operations, and customer relationships with Delta’s operational efficiency and global manufacturing base will strengthen Delta’s leading position in the power management industry" said Delta President James Ng.