Non-core disposal
Dialight sells non-core North American traffic signal lights business to Leotek Electronics for $5.8m gross proceeds.
- Gross cash proceeds $5.8m
- Net cash proceeds after costs $5.5m
- Gross value of assets sold $nil
- Profits attributable to business (12 months to 31 Dec 2023) $nil
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Dialight plc (LSE: DIA.L), a global leader in LED lighting for heavy industrial applications, today announces that it has entered into an agreement for the sale of its business manufacturing signal lights used in traffic, pedestrian and railroad management in North America (the Traffic Business) to Leotek Electronics USA LLC and realising gross cash proceeds of $5.8m. After transaction and other costs, net cash proceeds are $5.5m which will be used to reduce group indebtedness.
The Business had previously been identified as non-core.
The gross value of assets sold is $nil and profits attributable to the Business in the twelve-month period to 31 December 2023 of $nil.
Dialight will continue to manufacture products under licence for the acquirer for a period of up to 15 months from the completion date. Thereafter, the transaction will allow Dialight to focus management and production capacity on its core activities.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.