Stadium Group has agreed to be acquired by TT Electronics in a £45.8million deal. Stadium Group directors say that while the business would have a strong independent future, they considered that the offer by TT provides shareholders with value at a level which adequately reflects both the quality of the Stadium business and its prospects.
Richard Tyson, TT’s CEO, said: “The acquisition of Stadium is an important step to accelerate our strategy of building leading positions in sectors where increasing electrification is fuelling demand for our highly engineered electronic solutions.
“We look forward to welcoming Stadium’s employees and combining power electronics capabilities and R&D expertise to drive growth for the combined business. Stadium will add complementary technologies including connectivity offerings, in industries we already know well,” he added.
“The Stadium Board’s strategy in transitioning the company to a design-led technology business with a focus on wireless connectivity, power and interface and displays has been successful and is now entering the next phase of growth,” commented Stadium’s Chairman Nick Brayshaw.
“The strategic fit with TT is strong and the Stadium Board believes that the combined business provides considerable scope for accelerating the development of Stadium’s strategy,” he added.
TT says it has increased investment in R&D to launch more new products as it increasingly works alongside its customers to provide engineered electronic solutions.
Meanwhile, it adds, Stadium has successfully grown its Technology Products division through organic investment and acquisitions, setting up three R&D centres to position the business for future growth. Within the past three years Stadium has acquired PowerPax UK, Stontronics and Cable Power.
In September last year the company made investments at two of its manufacturing centres of excellence based in Hartlepool, UK and Dongguan, China. This has included a new surface mount technology (SMT) line, increasing capacity to four lines; an axial/radial machine; a Juki pick and place machine to increase existing line capacity; and quick changeover SMT equipment.