Avingtrans Regulatory News (AVG)

15 Sep 2006 07:00

Embargoed: 0700hrs, 15 September 2006 Avingtrans plc ("Avingtrans") Acquisition and Placing The Board of Avingtrans plc is pleased to announce the conditional acquisitionof B&D Patterns Limited ("B&D") for consideration of up to ‚£10.5 million, ofwhich ‚£6.583 million is payable in cash and ‚£417,000 will be satisfied by theissue of Avingtrans ordinary shares of 5 pence each ("Avingtrans Shares") oncompletion and the remainder subject to an earn-out calculated by reference toB&D's profit before tax for the years ended 31 May 2007 and 31 May 2008.B&D is a manufacturer and supplier of critical jet engine components to theaerospace industry. It specialises in precision engineered gas and fuelcarrying rigid pipe asemblies, which are required to be manufactured to thehighest quality levels using computer numerically controlled machining as wellas non-destructive testing and X-Ray procedures.B&D, which owns freehold properties which have been independently valued at ‚£3.1m, made a profit before tax of ‚£1 million on turnover of ‚£10.4 million inthe year to 31 December 2005. As at 31 December 2005, it had net assets of ‚£2.5million.In connection with the acquisition, Avingtrans has conditionally placed1,426,000 Avingtrans shares with an institutional investor at a price per shareof 125 pence, raising ‚£1.78 million (the "Placing Shares"). Further to this,170,000 Avingtrans shares will be subject to a Vendor Placing at the same priceraising a further ‚£212,500. Application has been made for the Placing Shares tobe admitted to AIM and admission is expected on 20 September 2006. The sharesto be issued will all rank pari passu with the Avingtrans' existing ordinaryshares. The remainder of the consideration will be funded through debt.Ken Baker, Chairman of Avingtrans, commented: "I am delighted to announce thisacquisition. B&D Patterns is a high quality precision engineering company witha proven track record. Its acquisition will enhance Avingtrans' existingactivities servicing the aerospace industry and it will, we believe, beearnings enhancing in the current financial year. The acquisition continuesAvingtrans' strategy of acquiring profitable precision engineering companies tosupport the Group's organic growth."For further information please contact:Ken Baker, ChairmanSteve Lawrence, Managing DirectorAvingtrans plcTel. 01159 499 020Ben Simons/Adam ReynoldsHansard CommunicationsTel. 020 7245 1100Nick LoveringBridgewellTel. 020 7003 3000ENDAVINGTRANS PLC