Magnetics Business & Technology - January/February 2021 - 30

INDUSTRY NEWS

TT Electronics Acquires Torotel for $43 Million; Reports Extent of Decline During Pandemic

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 closed in November and now 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.

Richard
Tyson, CEO of
TT Electronics

" 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 2020 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

Magnetics Business & Technology * January/February 2021

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.
For more info, see www.ttelectronics.com and www.torotelproducts.com.

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