Avingtrans Regulatory News (AVG)

4th July 2013 Avingtrans plc ("Avingtrans", "Group" or "the Company") Acquisition of Exterran UK Avingtrans plc, which designs, manufactures and supplies critical componentsand associated services to the global aerospace, energy, and medical sectors,announces that it has acquired the entire issued share capital of Exterran (UK)Ltd. ("Exterran UK"), the UK operations of US-based Exterran for a totalconsideration of £1 (the "Acquisition"). The principal activity of the acquired business, which is based in Walsall, isthe design, fabrication and installation of products for the global oil and gasmarket, including equipment solutions for petroleum production, gas processing,produced water treatment and aftermarket parts and services. The business hastraded in the UK for many years and has been a long standing customer ofMetalcraft. The business, which employs 85 people, will be integrated into theEnergy and Medical division of Avingtrans. This new part of the division willhenceforth be known as Maloney Metalcraft Ltd, to reinvigorate a previouslywell-known brand name in this market sector. Its key customers include:Petrofac, Talisman, Porvair, EDF and Shell. The Board believes that the Acquisition complements the existing capabilitieswithin its energy offering and will provide cross selling opportunities. Itwill also enable the Company to pitch for larger projects once the Acquisitionis fully integrated. The Board believes that the experience and capability ofthe Exterran UK engineering team will provide additional expertise asAvingtrans looks to increase its product offering and grow the division. In the financial year ended 31 December 2012, Exterran UK reported revenue of £16.3 million and an adjusted loss before tax of £0.5m (which includes anadjustment for the removal of a loss making contract which was novatedfollowing the year end). Exterran UK is being acquired with a cash balance of £2 million, which management believes will be sufficient to fund the turnaroundof the business, and on completion is expected to have net assets of circa £1.2million. The Company expects Exterran UK to be at least break even in the yearending 31 May 2015 and earnings enhancing thereafter. (1). Steve McQuillan, Chief Executive of Avingtrans commented: "We are pleased to announce the acquisition of Exterran UK which has a strongpedigree. This addition to the Avingtrans Group reinforces our plan to buildthe business around our two core divisions; Metalcraft (Energy and Medical) andSigma (Aerospace) and provides scale and expertise in the attractive Energymarketplace. We are delighted that they will be joining the Group and areconfident of our combined future success." -ends- Avingtrans plc Tel: 01159 499 020Steve McQuillan, Chief Executive OfficerStephen King, Finance Director Numis (Nominated Advisor & Broker) Tel: 020 7260 1000David Poutney (Corporate Broking)Richard Thomas (Corporate Finance and Nominated Adviser) Newgate Threadneedle(Financial PR) Tel: 020 7653 9850Josh Royston Heather Armstrong 1. No statement in this announcement is intended as a profit forecast or estimate for any period and no statement in this announcement should be interpreted to mean that earnings or earnings per ordinary share for the Company, for the current or future financial years would necessarily match or exceed the historical published earnings or earnings per ordinary share.