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11th November 2005
ORBITAL'S JOINT VENTURE SYNERJECT
INTENDS TO ACQUIRE BRP's ENGINE MANAGEMENT MODULE FACILITY
PERTH, AUSTRALIA:
Orbital Corporation Limited today announced that Synerject, its
50:50 joint venture with Siemens VDO Automotive Corporation, has
signed a letter of intent with BRP US Inc. for the purchase of BRP's
engine management modules facility in Delavan, Wisconsin, USA. It
is expected that the transaction, which comprises the investment
in working capital assets, should be finalised by 31st January 2006.
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.
The facility to be acquired manufactures fuel
injectors and engine management modules for Evinrude® and Johnson®
outboard engines. As part of the transaction, Synerject will continue
to supply BRP's Johnson and Evinrude division through long-term
supply contracts.
The acquisition will generate a minimum annualised
increase in Synerject's turnover of US$15m with significant, identified
growth prospects for the future. The facility will be profitable
from the date of acquisition and over the medium term is expected
to achieve profit margins consistent with those of Synerject's current
business. The transaction is a milestone in the implementation of
Synerject's strategic growth plan and presents Synerject with a
significant diversification opportunity, allowing it to increase
both its product offerings and skill base.
Orbital's Chief Executive Officer, Rod Houston
said "Clearly this transaction is significant for Synerject
and will complement its existing business. From Orbital's perspective,
it is a major step in consolidating the turnaround of our business
and shareholders will benefit from increased value created in a
growing Synerject."
Synerject, headquartered in Newport News, Virginia
with additional offices in France was formed in 1997 as a joint
venture between Orbital Corporation Limited and Siemens VDO Automotive
Corporation. Synerject supplies engine management systems, modules
and components for the marine, recreational, motorcycle and industrial
markets.
More information on Synerject can be
found at www.synerject.com
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