A Hartlepool-based electronics firm could be taken over by another business.
TT Electronics plc is hoping to buy Stadium Group plc in an almost £46million deal, with Stadium’s board of directors recommending the move go ahead.
Bosses have said they expect to see no job losses at the firm’s UK operation, but a headcount loss of 3% could happen with a reduction of staff in the US.
Stadium Group has previously described the Hartlepool plant, which is in Brenda Road in the town, as integral to the overall success of the company.
Stadium supplies design-led technologies including connectivity solutions, power supplies, human machine interface products and electronic assemblies.
Nick Brayshaw, chairman of Stadium, said: “On behalf of the Stadium board, I can confirm the recommendation of the Stadium Directors in favour of TT’s cash offer for Stadium.
“The Stadium board’s strategy in transitioning the company to a designled technology business with a focus on wireless connectivity, power and interface and displays has been successful and is now entering the next phase of growth.
“We believe that the offer from TT represents an attractive and certain value in cash today for Stadium shareholders, reflecting the high quality of the business, its people and future prospects.
“The strategic fit with TT is strong and the Stadium board believes that the combined business provides considerable scope for accelerating the development of Stadium’s strategy, strengthening the foundations to grow significant shareholder value whilst continuing to broaden the opportunities for our people, our customers and our products.”
Richard Tyson, CEO of TT, said: “The acquisition of Stadium is an important step to accelerate our strategy of building leading positions in sectors where increasing electrification is fuelling demand for our highly engineered electronic solutions.
“We look forward to welcoming Stadium’s employees and combining power electronics capabilities and R&D expertise to drive growth for the combined business. Stadium will add complementary technologies including connectivity offerings, in industries we already know well. We remain committed to deploying our resources to accelerate growth through capital investments and acquisitions to enhance TT’s potential and create value for our shareholders.”
A number of years ago Stadium Group chose Hartlepool as its UK centre of excellence.
It provides electronic technologies to markets including the industrial, marine, aviation, transport infrastructure and communication sectors.
In early 2017 the Mail reported that the firm had just acquired the assets of a Colchester-based company called of Cable Power, a specialist manufacturer of bespoke cable and power products.