Spectris sells Microscan unit for £123m; funds to cut debt

Instrumentation and controls company Spectris said it was selling its Microscan Systems unit to Omron Corporation for $157m (£123m) in cash.

The net proceeds from the sale will be used to “substantially” reduce debt, and increasing financial flexibility for future capital deployment, the company said in a statement.

The sale is expected to close in early fourth quarter, subject to regulatory approvals in the USA, and is expected to have an impact on 2017 adjusted earnings per share of approximately 2p.

At July 31, 2017, Microscan's book value of gross assets was £22m and adjusted operating profit for the year to end December 2016 was about £7m.

Spectris chief executive John O'Higgins said the sale was “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," he said.