As it said it would in March (CI No 1,389), Cambridge Electronic Industries Plc has got rid of its electronic components subsidiaries, and they have not gone to foreign buyers. Rather, the management of the electronics components subsidiaries has got together to form a company called the Roxboro Group Ltd which is to buy the companies out from Cambridge Electronic. Roxboro is backed financially by Schroder Venture Advisors and will pay up to UKP29m for the companies which produced pre-tax profits of UKP4m in 1989. Completion of the deal is expected on June 29 when UKP27.4m will be payable in cash with a further cash payment of UKP1.1m on December 31, and a possible further cash payment of UKP400,000 at a later date. The companies concerned are: Belling Lee Ltd, PED Ltd, CEI Component Holdings Inc, CRL Components Inc, Dialight Corp and Cambridge Capacitors Ltd. This last company is being bought in a separate management buyout by Powerpike Ltd. Cambridge Electronic has also sold a property belonging to Dialight for UKP3.6m and is negotiaitng the sale of the connector company Varelco to the group’s joint venture partner Elco Corp for up to UKP3m. Cambridge Electronic’s chief executive Paul Lester is pleased that the group has been able to carry out its plan so quickly. He added that by the end of the third quarter of 1990 the group will have received UKP34m from the disposal which will almost eliminate net debt. Cambridge will now focus on its high technology business and expects to make acquisitions in this area.
