Acting again on its commitment to continued investment in power management devices for aerospace and defense markets, TT Electronics has reached agreement to acquire Torotel in the US for $43.4 million. The deal is expected to close before the end of the year and then TT will absorb Torotel’s operations into its own as a wholly owned subsidiary. Separately, TT recently reported a 12% decline in revenues for the first six months of this year, a relatively modest drop compared to most companies amidst the global pandemic.
“We are really excited about the acquisition of Torotel, a business we have been tracking for some time. It is an excellent fit and complementary to TT’s existing US power electronics business, strengthening our position in critical defense applications,” said Richard Tyson, CEO of TT Electronics.
“Torotel is a clear fit with TT’s strategy to build leading positions in the aerospace and defense markets where the proliferation of electronics is driving demand for our custom power management and conversion systems,” added Michael Leahan, executive vice president for TT’s Power Solutions unit.
The acquisition will broaden TT’s power electronics capabilities and expanding US footprint following on its recent acquisition of the Covina, California-based business unit from Excelitas Technologies. Torotel will extend TT’s list of blue-chip US aerospace and defense customers, providing access to growth programs with sole-sourced positions on major platforms. TT is committed to investing in the business to further improve the business’ growth prospects and engineering capability, it said.
Meanwhile TT recently reported its business performance for the first half of this year ending June 30, reflecting its experience during peak periods of the Covid-19 pandemic. Revenues for the first six months of 2020 were £210 million compared to £238 for the same period a year ago, a decline of 12%. Operating profit fell from £19.2 million to £11.4, a 41% decline.
“All our manufacturing sites are open and gradually returning to full capacity. Our current expectation is that we will see improvement in the second half,” said Tyson. “As a result of our early experiences managing Covid-19 at our operations in China, we were able to roll-out a framework of effective controls across TT’s international locations. Our actions have helped us to protect our workforce and their families and enabled us to continue to deliver our essential products to customers, with just a few sites temporarily closed.”
Founded in 1956, Torotel is a leading designer and manufacturer of custom magnetics products primarily for the aerospace and defense industries. It is headquartered in Olathe, Kansas and has operating facilities there and in Hatfield, Pennsylvania.
It is a dedicated supplier to top defense contractors, manufacturing over 300 fully qualified military magnetic components. Its expertise in designing and manufacturing magnetic assemblies and custom magnetics has put its electronic components into the products of every major defense supplier, including Lockheed Martin, Raytheon, and Northrop Grumman. The components are utilized in everything from avionics to tactical missiles including laser seekers, heads-up displays, radar, secure voice data communications systems, forward-looking infrared targeting systems and missile control systems.
TT is a global provider of engineered electronics for performance-critical applications. The company operates mostly in aerospace and defense, medical and industrial sectors. Products designed and manufactured include sensors, power management devices and connectivity solutions. Based in Woking, England southwest of London, TT has design and manufacturing facilities including in the UK, US, Mexico, Sweden and Asia.