ORBITAL’S JOINT VENTURE SYNERJECT PURCHASES BRP’s ELECTRONIC COMPONENTS FACILITY _________________________________________________________________________ PERTH, AUSTRALIA: Orbital Corporation Limited today announced that Synerject, its 50:50 joint venture with Siemens VDO Automotive Corporation, has completed due diligence and will acquire BRP US Inc.’s electronic components facility in Delavan, Wisconsin, USA with effect from 1st March 2006. The investment by Synerject consists of working capital, principally receivables and inventory. Orbital expects the Delavan business will be profitable from the date of acquisition, with margins improving substantially over the medium term. The newly acquired business will increase Synerject’s revenue by more than 50%, compared to annual revenue of US$42m reported at 30 June 2005, with further identified growth prospects for the immediate future. Orbital’s Chief Executive Officer Dr. Rod Houston said the acquisition was a significant step for Synerject in achieving its long term growth strategy and would compliment its existing business. “Synerject’s due diligence has confirmed that Delavan is generating considerably more business than we indicated to the market back in November. The ensuing profit growth will be a significant addition to Orbital’s revenue streams from this part of our business. Synerject has proven to be a valuable investment for Orbital and I can see continuing opportunities for growth in this market sector,” said Dr. Houston. Synerject, headquartered in Newport News, Virginia with additional offices in France was formed in 1997 as a joint venture between Orbital and Siemens VDO Automotive Corporation. Synerject supplies engine management systems, modules and components for the marine, recreational, motorcycle and industrial markets. BRP US Inc. is a wholly-owned subsidiary of Bombardier Recreational Products Inc. (BRP), a privately-held company and a world leader in the design, development, manufacturing, distribution and marketing of motorised recreational vehicles. Its portfolio of brands and products includes: Ski-Doo® and Lynx™ snowmobiles, Sea-Doo® watercraft and sport boats, Johnson® and Evinrude® outboard engines, direct injection technologies such as Evinrude E-TEC®, Bombardier* ATV all-terrain vehicles, Rotax® engines and karts. More information on Synerject can be found at www.synerject.com.
OEC Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)