Invensys Sells DCE Dust Control Business

Invensys plc announced an agreement to sell its DCE dust control business to Donaldson Company Inc., for a total cash consideration of (pound)33 million.

For the twelve months ended September 30, 1999, DCE generated sales of (pound)48 million (representing approximately 50% of the Invensys Environmental Division) and profit before interest and taxation of (pound)0.3 million. Net operating assets, which are the subject of the transaction, are approximately (pound)30 million, (excluding goodwill, previously written off, of (pound)8 million). Completion of the transaction is conditional only on regulatory approvals.

Mr. Allen Yurko, Chief Executive of Invensys plc said, "We are pleased to announce the sale of the DCE business as the first divestment from our Environmental Division. The dust control industry is consolidating and the combination of Donaldson's Torit business, with its US strength, and DCE, with its strong European position, makes good business sense. This divestment brings the total proceeds from our disposal program to (pound)850 million and reinforces our strategy of focusing on automation and controls which is where we see the greatest opportunity for continued growth at Invensys."

DCE designs and manufactures dust control systems for a wide range of manufacturing and process industries worldwide. It has sales offices in 14 countries and factories in Leicester (UK), Louisville, Kentucky (US) and Bielefeld (Germany). DCE employs over 640 people.

Donaldson develops and manufactures filtration and exhaust systems which are applied to a wide array of products and operating environments, including air and liquid filters and exhaust and emission control products for mobile equipment; industrial air cleaning systems; intake and exhaust products for industrial gas turbines; aircraft and automobile passenger cabins; and specialized filters for highly sensitive environments like computer disk drives, cleanrooms and semiconductor processing.

Invensys plc is a global leader in the Automation and Controls industry. With its head office in London, England it operates in all regions of the world through four focused divisions - Intelligent Automation, Industrial Drive Systems, Power Systems and Controls. With over 100,000 employees, the company's products and services range from advanced control systems and networks for automating industrial plants and controlling the environments of buildings, to electronic devices and controls found in residential buildings and light commercial applications, plus complete power systems for the telecommunications and information technology industries. The Group was formed on February 4, 1999 through the merger of BTR plc and Siebe plc.