TDK to Acquire Invensys’ Power Supply Business

July 18, 2005 by Jeff Shepard

TDK Corp. (Japan) has signed an agreement to buy the Lambda Power division from Invensys plc (Chippenham, England) for $235 million. The division, which includes Lambda USA, Lambda Europe, Densei-Lambda KK (Japan), and other entities, conducts business in 13 countries. The division develops, makes, and sells power-related supplies. TDK did not say when the takeover will be completed, but Invensys indicated that the purchase is likely to be completed by September 30, 2005, subject to approvals, and the proceeds would be used to pay off debt.

The transaction may be among the last conducted by Chief Executive Rick Haythornthwaite, who steps down on July 22, 2005, after shedding 17 businesses to save Invensys from the brink of credit default. The company aims to review its workforce as it pursues cost cuts. "This disposal is a further step in the group's previously stated plans for the divestiture of non-core businesses," stated Chief Executive Designate Ulf Henriksson.

TDK Vice President Kiyoshi Ito stated, "The acquisition is intended to establish a more resilient operating base in the power-supply field, which is expected to continue to grow in the years ahead."