Key Technologies, the InvestBX-listed engineering business, has sold its rail business at Cradley Heath to Mors Smitt. The Stratford-upon-Avon-based company, which is part of the Grove Industries portfolio, divested the businesses for £2.4m.
Mors Smitt is a Netherlands-based railway technologies company.
The divested business specialises in the manufacture of signalling relays and designs and manufactures train protection warning systems and components.
It will trade as Mors Smitt UK and will remain on the Cradley Heath site, which is shared with Key Technologies’ headquarters, STS Switchgear and STS Motors.
Key Technologies said it will retain the STS Rail business located in Wimborne, Dorset, which manufactures telecommunication concentrators for railway applications.
In the financial year to June 30 2010, the divested business had sales of £2.83m and an operating profit of £240,000.
Key Technologies, one of nine companies in the Grove Industries portfolio, is listed on Birmingham-based stock exchange InvestBX.