Technitrol Completes $200 Million Medtech Divestiture

Technitrol Inc. (NYSE: TNL) has completed the sale of its Denmark-based Medtech components business to Altor Equity for $200 million. The business generated $110 million in revenue last year, and includes the balanced armature receivers, high-end microphones and electromechanical devices for the hearing aid, high-end audio headset and medical device markets.


Technitrol, Inc. (NYSE: TNL) announced today that the company has completed the previously announced sale of its Medtech components business (“Medtech”) to Altor Fund III (“Altor”). The sale price was approximately $200 million in cash. Medtech includes the former Sonion A/S’s balanced armature receivers, high-end microphones and electromechanical devices for the hearing aid, high-end audio headset and medical device markets. Remaining with Technitrol will be the former Sonion business engaged in high-volume transducers mainly for speakers used in cell phones and similar communication devices.

Net proceeds from the divestiture are being applied to reduce Technitrol’s outstanding debt which will result in an immediate reduction in the company’s debt-to-EBITDA leverage ratio. The proceeds will completely retire the company’s term indebtedness and reduce quarterly interest expense by approximately $2.0 million at current rates of interest. In addition, Technitrol expects that its projected remaining revolving debt of $127 million, due in 2013, will be reduced further with proceeds from the planned divestiture of the Electrical Contact Products Group (AMI Doduco).

With estimated pro forma 2009 revenues of $450 million, Technitrol’s remaining Electronic Components Group (which excludes Electrical Contact Products), will focus on expanding its presence and penetration in the following core markets:

  • wireline communications (37% estimated Electronics revenue share), for use in switches, hubs, routers, and cable and telephony devices enabling voice, video and data (“triple-play”) services;
  • wireless communications (38% estimated revenue share) for use in handsets, PDAs and a variety of mobile terminals and infrastructure that enable voice and data networking and automotive and energy monitoring systems;
  • power electronics (25% estimated revenue share), for use in applications such as electronic automotive controls, power converters, voltage regulators, power-sensing equipment used in the “smart grid” and military/aerospace navigation and communication systems.

Based in Philadelphia, Technitrol is a worldwide producer of electronic components, electrical contacts and assemblies and other precision-engineered parts and materials for manufacturers in the wireless and wireline communications, military/ aerospace, automotive and electrical equipment industries. For more information, visit Technitrol’s Web site at

The Altor funds (Altor) are private equity funds comprising the “Altor 2003 Fund,” with committed capital of EUR 650 million, the “Altor Fund II,” with committed capital of EUR 1,150 million, and the “Altor Fund III,” with committed capital of EUR 2,000 million. Altor is advised by Altor Equity Partners. Altor invests in companies in the Nordic region with a focus on value creation through growth initiatives, strategic development and operational improvements. Among Altor’s investments are Lindorff, AGR Group (Listed on the Oslo Stock Exchange), Relacom, Ferrosan, Meyn, Aalborg Industries, PaloDEx, Navico, Byggmax, Nimbus Boats, SPT Group, PIAB, Dustin, Helly Hansen, Euro Cater, Vatus, Northstar, Wrist, Q-matic, Constructor, Papyrus, Carnegie and Max Matthiessen. Prior investments include ACO Hud AB (divested to Omega Pharma) and Dynapac (divested to Atlas Copco). For more information, please visit