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September 6, 1988

ALLIED ELECTRONICS MOVES TO DIVERSIFY TELEMTETRIX WITH TWO DEALS IN THE US

By CBR Staff Writer

Following the acquisition of the technical and marketing interests of Rastarex A/S of Oslo, Norway (CI No 1,005) graphics terminal systems specialist Telemetrix Plc, Tewkesbury, Gloucestershire has announced that it is to acquire its controlling parent’s US component manufacturing and distribution businesses in deals worth UKP18.7m in total. The deals involve the acquisition of privately-held Esco Sales Inc – which also owns 80% of distribution business Electronic Components – and GTI, both of which are associated companies of Telemetrix’s South African parent Allied Electronics Corp Pty. The deal hinges on GTI shareholders agreeing to purchase Esco. If so Telemetrix will acquire a 49.2% stake in the San Diego, California-based electronic component and circuit board manufacturer whose shares are listed on the American Stock Exchange. The company produces glass-to-metal seals and welded metal leads which are used in the manufacture of diodes, capacitors and rectifiers while its circuit board products include die stamped printed, etched flexible and etched rigid types. In the year to December 31 1987 GTI had a turnover of $20.7m, returning pre-tax profits of $1.3m. Riverside, California-headquartered Esco Sales Inc supplies wire, cable, connectors and electromechanical devices OEM in the medical electronics, instrumentation and telecommunications industries. Turnover for the year to December 31 1987 was $17.5m and pre-tax profits were $903,000. The aggregate value of the acquisitions, which is being handled by brokers Henry Cooke, Lumsden Plc, has been set at $18.7m to be satisfied by the issue 23,236,287 new Telemetrix ordinary shares valued at 47.4 pence per share. If GTI shareholders do not agree to purchase Esco Telemetrix will purchase the whole of the issued capital of Esco together with a 37.9% shareholding in GTI. Telemetrix says it wishes to diversify into new spheres of activity having a link with its existing business while reducing its dependency on the computer display market. If the transactions go through as planned, Allied Electronics – or Altron – will increase its holdings in Telemetrix Plc to 70% of the equity.

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