- Majority of sale proceeds expected to be used for share repurchase;
- Connectivity and sensor solutions now account for 90 percent of sales
TE Connectivity Ltd. (NYSE: TEL), a world leader in connectivity, today announced that it has completed the previously announced divestiture of its Broadband Network Solutions (BNS) business to CommScope (NASDAQ: COMM) for $3.0 billion. TE continues to expect to use the majority of the proceeds from the sale for share repurchase, making the transaction neutral to adjusted earnings per share (EPS) in one year's time.
"Our strategy is focused on strengthening our leadership position in connectivity and sensor solutions, with an emphasis on harsh environment applications," said TE Connectivity Chairman and CEO Tom Lynch. "With the sale, 90 percent of our sales are derived from the attractive connectivity and sensor markets, and over 80 percent address harsh environments applications. These markets have strong underlying growth drivers as customers develop innovative products to meet the demands of a smarter, greener, safer and more connected world. We want to thank the BNS team for their leadership over the years, and wish them continued success as part of the CommScope team."
NON-GAAP MEASURES
Adjusted Earnings Per Share is a non-GAAP measure and should not be considered a replacement for GAAP results. Adjusted Earnings Per Share represents diluted earnings per share from continuing operations attributable to TE Connectivity Ltd. (the most comparable GAAP measure) before special items, including charges or income related to restructuring and other charges, acquisition related charges, impairment charges, tax sharing income related to certain proposed adjustments to prior period tax returns and other tax items, certain significant special tax items, other income or charges, if any, and, if applicable, the related tax effects. Adjusted Earnings Per Share is not intended to represent results of operations in accordance with GAAP and should not be considered a substitute for diluted earnings per share from continuing operations or any other operating measure prepared in accordance with GAAP.
www.te.com
