Troubled telecoms equipment firm Marconi today took another step towards denting its debt mountain with the £277 million sterling sale of its US-based subsidiary Data Systems.
The sale, of the Illinois-based supplier of ink jet printers and printing systems will take the firm closer to its debt target of between £2.7 billion and £3.2 billion by the end of March.
It is selling the business, which employs 1,500 staff around the world, to Danaher Corporation, the US tools and controls group.
Mr Mike Parton, Marconi's chief executive said: "This transaction represents a significant further step towards Marconi's stated objective of maximising cash proceeds from non-core asset disposals and further helps the Marconi management team to apply focus and commitment towards our core communications business."
The deal follows a spate of disposals by Marconi to slice its debt from £4.4 billion, with sales including its 50 per cent stake in Hotpoint-owner General Domestic Appliances, its North Carolina petrol pump-making business, and various property interests.
It comes less than a week ahead of Marconi's next trading update. Next Tuesday the group will update the market on the three months to the end of December.
Today's transaction is subject to regulatory approval and is expected to completed before March 31st. Marconi's shares were up three per cent at 41p.
PA