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10 Jun 2008 07:00
10 June 2008
Hampson Industries PLC ('Hampson' or 'the Group')
Contract Extension
and
Completion of Acquisitions
The Group announces that its subsidiary, Hampson Aerospace Machining Limited, has entered into a new, extended agreement worth £7 million per annum with a major customer to supply small, precision machined components manufactured in Leicester, UK. Hampson Aerospace Machining Limited is a member of the Group's Aerospace Components & Structures Division.
The new agreement, which covers the period to 31 December 2010, secures existing volumes and increased prices on certain components. The agreement also includes provision to ensure the recovery of potential future raw material cost increases.
Commenting on this new contract, Chief Executive Kim Ward said:
"Hampson's Aerospace Components & Structures division has demonstrated strongly improved performance in recent years. The backlog for gas turbine aero engines is at an all time global high. This contract extension demonstrates Hampson's commitment and capacity to support our customers' growth plans in a very strong market."
Furthermore, the Group announces that the acquisitions of Odyssey Industries, Inc. and Global Tooling Systems, Inc. have been successfully completed.
Ends.
For further information please contact:
Hampson Industries PLC 01384 485345
Kim Ward, Chief Executive
Howard Kimberley, Finance Director
Arbuthnot 020 7012 2000
Mark Brown/James Steel
Investec 020 7597 5970
Keith Anderson/Michael Ansell
M: Communications 020 7153 1269
Jonathan Gollins/Marylene Guernier
About Hampson:
Hampson Industries PLC is listed on the main market of the London Stock Exchange (Symbol: HAMP).
The Group's operations are structured into three business segments, serving primarily the global commercial and military aerospace and specialist engineering markets from manufacturing facilities in the UK, North America and India.
Approximately 85% of the Group's sales are derived from its aerospace activities, the balance from the market for automotive turbocharger components.
The Group, following the acquisitions of Odyssey Industries, Inc. ("Odissey") and Global Tooling Systems, Inc. ("GTS") now employs over 2,400 people worldwide. For more information on Hampson: www.hampsongroup.com
About the acquisitions:
Odyssey and GTS, both based in Michigan, USA, are leading suppliers of large, close-tolerance tooling systems and services for the commercial and military aerospace industries. Odyssey specialises in particular in the design and manufacture of invar bond tools, which are used in the manufacture of large aero structural components made from carbon composite materials. GTS's principal area of focus is complex, integrated tooling solutions for carbon composite component manufacture and high-level airframe assemblies. Odyssey and GTS are suppliers to a number of the latest generation of commercial and military aircraft platforms, including the Boeing 787 and F-35 Joint Strike Fighter.
The Board believes that the acquisitions, when positioned alongside the Group's current composite tooling component operations, have made Hampson the largest independent manufacturer of tooling systems for composite aero-structures in the world (by revenue and customer penetration) and offer an excellent opportunity to accelerate the growth strategy already in place within the Group.
The acquisitions substantially increase Hampson's direct and indirect exposure to the use of advanced composite materials in aerospace to a level in excess of over half total Group revenues.
Investec, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Hampson as joint sponsor, joint financial adviser, joint broker and joint underwriter and for no one else in relation to the matters described in this announcement and will not be responsible to anyone other than Hampson for providing the protections afforded to customers of Investec or for providing advice in relation to the subject matter or contents of this announcement.
Arbuthnot, which is regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Hampson as joint sponsor, joint financial adviser, joint broker and joint underwriter and for no one else in relation to the matters described in this announcement and will not be responsible to anyone other than the Hampson for providing the protections afforded to customers of Arbuthnot or for providing advice in relation to the subject matter or contents of this announcement.
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