Last checked at 29 Jan 2016 07:00
29 January 2016
Avingtrans Plc
("Avingtrans" or the "Company" or the "Group")
Acquisition of Rolls-Royce pipe manufacturing business
Avingtrans (AIM:AVG) is pleased to announce that Sigma Components, which forms Avingtrans PLC's aerospace division, has agreed to acquire Rolls-Royce's internal pipe manufacturing businesses in Nuneaton, UK and Xi'an, China for £3.5m, which is being funded by the Company's existing debt facilities. Avingtrans designs, manufactures and supplies critical components, modules and associated services to the aerospace, energy and medical sectors
Sigma has developed a strong relationship with Rolls-Royce over a number of years, by supplying components for numerous engine programmes.
As well as strengthening the Group's UK manufacturing footprint, the Chinese facility complements the Group's existing operations in Chengdu and will further enhance Sigma's offering to global aerospace OEM's in this key growth region. The acquisition will also reinforce the Company's position in several key engine programmes - notably the Trent XWB - and provide a strong platform from which to grow sales across our wider product range.
Sigma will use the combined capabilities of its UK and Chinese facilities to offer competitive commercial terms to Rolls-Royce, as the XWB programme grows rapidly. This acquisition will grow Avingtrans' Aerospace sales significantly, as Sigma continues to strengthen its position in the core markets of pipes, ducts and fabrications.
Rolls-Royce's internal pipe manufacturing business employs 132 people at its Nuneaton facility, with an additional 110 personnel working at its Xi'an site. Operations will continue at both sites following the completion of the deal.
At completion, around the beginning of March 2016, the acquired assets are expected to be £3.5m and, in the previous financial year, to December 2015, the business traded at an approximately break-even level.
Steve McQuillan, CEO of Avingtrans, said: "This acquisition is a key part of our strategy to support Sigma's growth with investment in businesses and technologies that complement our existing capabilities. We are delighted to be working with Rolls-Royce on these major programmes."
For further information, visit www.sigmacomponents.com
Enquiries:
Avingtrans plc Steve McQuillan, Chief Executive Officer Stephen King, Chief Financial Officer
| Tel: 01159 499 020 |
Numis David Poutney (Corporate Broking) Richard Thomas (Corporate Finance and Nominated Adviser)
| Tel: 0207 260 1000 |
Newgate (Financial PR) Adam Lloyd Ed Treadwell | Tel: 020 7653 9850
|
About Avingtrans
Avingtrans plc is engaged in the provision of highly engineered components, modules and services to the Aerospace, Energy and Medical markets worldwide.
The business is made up of two divisions
Aerospace, engaged in the manufacture of rigid pipe assemblies, fabrications and prismatic components - both metallic and composite - for the global aerospace market and precision polishing of aircraft components and;
Energy and medical, engaged in the design and manufacture of machined and fabricated pressure and vacuum vessels and process plant and equipment for the power, oil & gas and medical markets. Plus, design and manufacture of fabricated poles and cabinets for roadside safety cameras and rail track signalling.