Smiths Group Agrees to Buy TRAK from Veritas Capital for $111.5 Million.Business Editors/High-Tech Writers LONDON and NEW YORK--(BUSINESS WIRE)--April 24, 2004 Smiths Group today announced the acquisition of TRAK TRAK Track TRAK Technology to Recover Abducted Kids (system to help law enforcement agencies) Communications Inc., a leader in the design and manufacture of microwave sub-systems, antennas and related components, for $111.5 million (GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 63m) from Veritas of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . TRAK will form part of Smiths Interconnect, a leader in the supply of application specific electronics for military and commercial markets. This acquisition is the fifth Smiths has announced since presenting its interim results on 10 March, bringing total expenditure to $330.5 million (GBP 187m). Commenting on this acquisition, Smiths Group chief executive Keith Butler-Wheelhouse said, "Smiths continues to pursue its strategy of profitable growth through investing in new technology and the acquisition of businesses which complement or expand our offering to the customer. This is our fifth purchase announcement in five weeks and underlines our intent to acquire high growth companies." TRAK, with 425 employees and 2003 turnover of $71 million (GBP 40m) operates from facilities in Tampa in Florida, Thousand Oaks, California Thousand Oaks, commonly referred to as "T.O." by residents, is a city in southeastern Ventura County, California, in the United States. It was named after the many oak trees that grace the area, and the city seal is adorned with an oak. and Dundee, Scotland. Smiths Group is satisfying the acquisition consideration in cash. It is expected to close at the end of May, subject to regulatory approvals. Robert B. McKeon, Chairman of Veritas Capital, said, "Our investment in TRAK is consistent with Veritas Capital's investment strategy of partnering with quality companies to increase value for our investors and partners. Smiths clearly recognizes that TRAK is now positioned to enhance its business portfolio and deliver results from the outset." Einar Lindh, group managing director of Specialty Engineering In systems engineering, Specialty Engineering includes the engineering domains that are not typical of the main engineering effort. Hardware engineering, software engineering, and human factors engineering may be used as major elements in a majority of systems engineering efforts added; "TRAK brings a portfolio of world-class microwave sub-systems which is complementary to Interconnect's products. It will extend our capability in existing markets, and by packaging together Interconnect and TRAK products, we will enhance our position with customers." About Smiths Group Smiths Group designs and manufactures safety critical systems and products, and has market leading positions in aerospace systems, detection systems, medical devices, mechanical seals, and interconnect products. For further information, visit www.smiths-group.com About Smiths Interconnect Smiths Interconnect offers a broad range of electrical and electronic connectors, low loss coaxial, cable and connector assemblies, microwave components, antennas, lightning strike lightning strike n → huelga relámpago lightning strike n (Brit) → grève f surprise lightning strike n (BRIT protectors, electrical surge suppressors, radio-frequency connectors and passive intermodulation in·ter·mod·u·la·tion n. Modulation of the frequencies of electromagnetic waves occurring when the waves interact as they are transmitted through a nonlinear electronic system. analysers. They are supplied to military and commercial customers for integration into systems which require high standards of connectivity, longevity and durability. For details of Smiths Specialty Engineering visit www.smiths-industrial.com About TRAK Communications Inc. Founded in 1960 as TRAK Microwave, the business developed with the acquisition of TECOM TECOM Test & Evaluation Command (Army) TECOM Training and Education Command (US Army) and TRAK Europe, before being acquired by Veritas, a New York private equity company. TRAK has market leading positions in three key technologies: 'sources', devices used to generate highly accurate base frequencies for communication systems; ferrites, magnetic devices used to isolate or combine microwave signals; and rugged antennas for military and airborne applications. Sales to governments, or to projects whose ultimate customers are government agencies, account for over half of TRAK's business, principally US defence projects, unmanned vehicles and avionics applications. Significant defence customers include Raytheon, BAE Systems BAE Systems British manufacturer of aircraft, missiles, avionics, naval vessels, and other aerospace and defense products. BAE Systems was formed (1999) from the merger of British Aerospace (BAe) with Marconi Electronic Systems. , Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. , Harris and Boeing. TRAK also enjoys good positions on commercial projects with major customers such as Nokia, Motorola, and Ericsson. About Veritas Capital Veritas Capital is a private equity investment firm headquartered in New York. Founded in 1992, Veritas invests in a broad range of companies through middle market buyouts, growth capital investments, and leveraged recapitalizations. Through its investment funds Noun 1. investment funds - money that is invested with an expectation of profit investment assets - anything of material value or usefulness that is owned by a person or company , Veritas manages equity capital committed from leading financial institutions, state pension funds, insurance companies and high net worth individuals and families. For more information visit www.veritascapital.com. |
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