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Invensys agrees to sell Invensys Rail to Siemens for GBP1.74B

The company said, “Following a strategic review which highlighted the likely consolidation in the global rail signaling market and the limited scope to increase the size of the Invensys Rail business, we have decided to refocus the Group around our industrial software, systems and control equipment business and, accordingly, to dispose of Invensys Rail. As well as providing Shareholders with an immediate cash return, this transaction enables the Group to create a long term pension solution and therefore increased financial flexibility going forward. The agreements we have reached with the Trustee of the Invensys UK Pension Scheme for the GBP400M contribution and the GBP225M Reservoir Trust will result in the cessation of the current deficit reduction payments of GBP40M-GBP47M per annum and we anticipate that no further contributions will be payable into the Scheme." Associated with the sale, Invensys announced a proposed return of cash to shareholders of GBP625M.