(Alliance News) - Avingtrans PLC on Friday said it has agreed to sell its Peter Brotherhood unit for GBP35.0 million.
Shares in the supplier of equipment and services to the energy, medical and industrial markets were 12% higher at 335.60 pence each in London on Friday morning.
Peter Brotherhood Ltd, a Peterborough, England-based firm which Avingtrans acquired in 2017 for GBP9.3 million, will now be part of Howden Group Ltd, a Renfrew, Scotland-based provider of air and gas handling products. Peter Brotherhood came as part of the purchase of Hayward Tyler Group. It makes steam turbines, turbo gen-sets, compressors, gear boxes and combined heat and power systems.
"The disposal has been orchestrated in-line with the company's long term Pinpoint-Invest-Exit strategy, which aims to realise value for shareholders. Peter Brotherhood was in difficulty when it was acquired by Avingtrans and a rapid restructuring programme was implemented, followed by a strategy reset. This led to a project to recruit and train an improved sales force, multiple sales agents and a strengthening of the aftermarket team, which proved to be the key to recovery and increased value," Avingtrans said.
By Eric Cunha; ericcunha@alliancenews.com
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Avingtrans (AVG)