Divestment of Microscan

30 August 2017 – Spectris plc (‘Spectris’) (LSE: SXS), the productivity-enhancing instrumentation and controls company, today announces that it has signed an agreement to sell its Microscan Systems, Inc. business (‘Microscan’) to Omron Corporation (‘Omron’) for a total cash consideration of $157 million (£123 million), payable in cash on completion, subject to closing adjustments. The net proceeds from the sale will be used to substantially reduce our net debt, thereby increasing our financial flexibility for future capital deployment.

As at 31 July 2017, the book value of Microscan’s gross assets amounted to approximately £22 million. The adjusted operating profit generated by Microscan for the year ended 31 December 2016 was approximately £7 million. The sale is expected to close in early fourth quarter, subject to customary closing conditions and regulatory approvals in the USA, and is expected to have an impact on 2017 adjusted earnings per share of approximately 2 pence.

Microscan is a global provider of world-class machine vision technology and solutions for critical identification, inspection and verification applications. Spectris’ strategy is transitioning to provide innovative customer solutions incorporating hardware, software and services in selected markets. In this context, Spectris believes Microscan’s next stage of development can be better fulfilled elsewhere.

Commenting on the transaction, John O’Higgins, Chief Executive, said: “This is an important step in focusing Spectris on its areas of strength. Omron is well-aligned strategically with Microscan and as such, we believe that this will be a good home for Microscan in the next phase of its corporate journey.”

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Contacts:

Spectris plc
John O’Higgins, Chief Executive
Clive Watson, Group Finance Director
Siobhán Andrews, Head of Corporate Affairs
+44 1784 470470

FTI Consulting
Richard Mountain / Susanne Yule
+44 203 727 1374

NOTES TO EDITORS
Omron Corporation is a public company based in Kyoto, Japan with a market capitalisation of JPY1.18 trillion (£8.4 billion). Established in 1933, OMRON has about 36,000 employees worldwide, working to provide products and services in 117 countries. The company’s business fields cover a broad spectrum, ranging from industrial automation and electronic components to automotive electronics, social infrastructure systems, healthcare, and environmental solutions.

ABOUT SPECTRIS
Spectris plc is a leading supplier of productivity-enhancing instrumentation and controls. The Company’s products and technologies help customers to improve product quality and performance, improve core manufacturing processes, reduce downtime and wastage and reduce time to market. Its global customer base spans a diverse range of end user markets. Spectris operates across four business segments which reflect the applications and industries it serves: Materials Analysis, Test and Measurement, In-line Instrumentation and Industrial Controls. Headquartered in Egham, Surrey, United Kingdom, the Company employs approximately 9,000 people located in more than 30 countries. For more information, visit www.spectris.com.