Last checked at 16 Nov 2012 08:57
16 November Avingtrans plc ("Avingtrans", "Group" or "the Company") Acquisition of Aerospace Assets
Avingtrans plc, which designs, manufactures and supplies critical components and associated services to the global aerospace, energy, and medical sectors, announces that it has agreed to acquire the trade and certain business assets and liabilities relating to the manufacture of aerospace components from PFW UK Limited's Farnborough site ("PFW Farnborough" and the "Acquisition") for a cash consideration of £1.85 million. The acquisition is due to be completed on 3 December 2012, following the completion of final targeted due diligence and employee consultation.
Highlights of the Acquisition:
* Strengthens the Group's Aerospace division * Cash consideration of £1.85m * Reinforces Avingtrans' position with certain existing customers as well as introducing new customers to the Group * Broadens process and design capabilities to expand aerospace market offering
Information on the assets being acquired
The principal activity of the PFW Farnborough business is the manufacture of a wide range of precision aerospace components, from pipes and ducts to airframe structures. The directors of Avingtrans (the "Board") believe that the Acquisition enhances the Group's Aerospace components and sub-assemblies offering and the Board are pleased to have taken further steps in implementing the Group's strategy, outlined recently after the disposal of the Company's Industrial Products division. PFW Farnborough has a number of customers in common with Avingtrans, as well as several customers with whom the Company has no existing commercial relationship. The Board therefore believes that the acquisition will both strengthen its current portfolio and also add valuable new sales channels.
PFW Farnborough generated revenues of £7.5 million* and a trading loss of £1.8 million* during the year ended 31 December 2011. However, the Board believes that its current run rate and the potential is materially higher. The net book value of the assets and liabilities being acquired has been valued at £2.3m million as at 30 September 2012*. PFW Farnborough employs 102 people in the UK, all of whom are expected to transfer to Avingtrans following an appropriate consultation process.
Steve McQuillan, Chief Executive of Avingtrans commented:
"The recent sale of Jena Tec provided us with a more focused business and the means to invest in our core activities, including in our thriving Aerospace division. This acquisition will further strengthen our position in the aerospace pipes market, making us a leading player in this niche in the UK. We will develop the PFW Farnborough capabilities to broaden our product offering and thus expand our aerospace supply footprint.
"With the proceeds from the Jena Tec disposal, we will continue to explore opportunities which would improve our customer reach and thereby further strengthen our position in this attractive market."
* Source: PFW Farnborough unaudited management information, prepared under generally accepted accounting principles in the UK
-ends- Avingtrans plc Tel: 01159 499 020 Steve McQuillan, Chief Executive Officer finnCap (Nominated Advisor & Broker) Tel: 020 7220 0500 Marc Young/ Henrik Persson Newgate Threadneedle(Financial PR) Tel: 020 7653 9850
Josh Royston
XLON