Teledyne Enters Agreement to Acquire Filtronic Solid State Business
LOS ANGELES - December 17, 2003 - Teledyne Technologies Incorporated (NYSE:TDY) announced today that it has entered into an agreement to acquire certain assets of the Filtronic Solid State (Solid State) business from Filtronic plc for $12 million. The transaction is expected to close on or about December 31, 2003. The transaction is subject to customary closing conditions.
Solid State designs and manufactures customized microwave subassemblies for electronic warfare, radar and other military applications. Following the acquisition, the business will be relocated from Santa Clara, California and consolidated with Teledyne Wireless in Mountain View, California.
"Solid State is highly complementary to our Teledyne Wireless and Teledyne Microwave Electronic Component units," said Robert Mehrabian, chairman, president and chief executive officer of Teledyne Technologies. "Solid State's precision YIG-based oscillators, filters and amplifiers serve the same customers as our traveling wave tubes, voltage controlled oscillators and other products, and are used on many of the same military programs.
"We expect to obtain significant synergies through the consolidation of Solid State with our current military microwave subassembly operations in Mountain View, California. Solid State's strong and experienced management team will assist us in our strategy to develop a broader line of specialized, high-performance microwave products for military radar, electronic warfare, missile and communication applications."
Professor J David Rhodes CBE FRS FREng, Executive Chairman of Filtronic plc, said "We are pleased that the Solid State electronic warfare business will have such a strong new owner in Teledyne. The complementary skills and business opportunities arising through Teledyne should provide excellent growth for the Solid State business and employees. In the future, Filtronic looks forward to building upon the strong relationships formed with Teledyne through this transaction."
Solid State's electronic warfare business had sales of approximately $12.5 million for the fiscal year ended May 2003. Teledyne Technologies expects the acquisition of Solid State to be accretive to earnings in 2004. The business will be operated as Teledyne Wireless, Inc. Filtronic will retain its Solid State semiconductor business in California.
Teledyne Technologies is a leading provider of sophisticated electronic components, instruments and communication products, systems engineering solutions, aerospace engines and components and on-site gas and power generation systems. Teledyne Technologies has operations in the United States, the United Kingdom and Mexico. For more information, visit Teledyne Technologies' website at www.teledyne.com.
Forward-Looking Statements Cautionary Notice
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, relating to the Company's earnings and its Solid State acquisition. Actual results could differ materially from these forward-looking statements. Many factors, including the Company's ability to integrate the business and achieve anticipated synergies, could change the anticipated results.
For more information, visit Teledyne Technologies' website at www.teledyne.com.