Marconi offloads US interests

8 Jul 2004

UK equipment manufacturer Marconi sold its US subsidiary Outside Plant & Power (OPP) yesterday to St Louis based power systems company Emerson for GBP220 million, according to the Financial Times. Marconi is planning to use the proceeds from the divestment, which should be completed within two months and marks the final stage of the company’s stripping out of assets deemed non-core, to reduce debts incurred during last year’s restructuring process. In the year to 31 March 2004 OPP, which makes cabinets and power systems for telecoms equipment, recorded an EBITDA of USD14 million on total sales of USD209 million. The price paid by Emerson was comfortably ahead of the GBP150 million consensus forecast from the analyst community.

United Kingdom, United States