Last checked at 21 Feb 2012 07:00
21 February 2012
Avingtrans Plc
("Avingtrans" or "the Company")
Acquisitions and creation of Sigma Composites business
Avingtrans (AIM: AVG), a manufacturer of critical components and associated services to the medical, energy, industrial and global aerospace sectors, announces the formation of Sigma Composites Ltd following the agreement to acquire Delta Composites Ltd., Alpha Composites Ltd. and Orion Machining Ltd, (collectively known as "Composites Engineeering Group" or "CEG") based in Buckingham, UK.
The acquisition of these assets further strengthens the offering of Avingtrans' Aerospace Division, as the acquired business has a strong foothold in F1/Motorsport and, with AS9100-approved facilities, also serves Aerospace, other hi-technology markets such as satellite communications and 'prestige automotive'. Avingtrans is already supplying to a global blue-chip customer-base.
Sigma Composites will operate from the existing Buckingham facilities, with its sister company Sigma Precision Components remaining at its facilities in Hinckley, UK and Chengdu in China. Sigma's business model provides its global customers with complete product life-cycle support, optimising method and option of location of manufacture to best meet market needs. This latest development widens Sigma's offering and widens market access substantially.
The effect of the acquisition is expected to be broadly neutral in the current financial year and to be earnings enhancing in the year commencing June 2012.
Mark Johnson, Divisional Managing Director of Avingtrans Aerospace commented:
"Acquiring a capability in composites is something we have been seeking for some time and we are delighted that we now have a well-established business in Sigma Composites. The addition of a composite engineering capability, combined with existing high precision engineering, should create a compelling prospect for our existing and prospective customers, and is a significant step forward for us."
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