HAMP.L Regulatory News (HAMP)

23 June 2010

Disposal of Hampson Precision Automotive Limited

Hampson Industries PLC ("Hampson" or "the Group"), the international aerospace group, today announces that it has completed the sale of 100% of the shares in its loss-making UK-based automotive subsidiary, Hampson Precision Automotive Limited ("HPAL") to a company backed by the directors of GIL Investments Limited for a cash consideration of £2.5 million. The proceeds are subject to adjustment to reflect the final net current asset position of HPAL.

The Group's Bangalore, India-based, operation is excluded from the transaction and will be retained by Hampson to provide low cost manufacturing capability in support of the Group's aerospace businesses.

The net proceeds of the transaction after expenses will be used to reduce Group borrowings.

Chairman Chris Geoghegan said: "The disposal of our automotive turbocharger business reflects the successful conclusion of our strategic initiative to dispose of non-core assets, to streamline our business portfolio and to transform Hampson into a pure international aerospace group.

"Completion of this transaction follows successful internal management actions to restructure and improve HPAL's performance following extremely challenging recent conditions in global automotive markets. It will enable us to focus exclusively on building on our existing strong market positions in aerospace and exploiting the organic growth opportunities that we expect to arise from the increasing use of light weight, carbon composite structures in aero engine and airframe applications going forward."

Ends

Further information:

Howard Kimberley, Finance Director +44 (0)1384 472946

Marylene Guernier/Ed Orlebar, M:Communications +44 (0)20 7920 2369/2323

About Hampson Industries:

The Group's operations are structured into two business segments, serving primarily the global commercial and military aerospace markets from manufacturing facilities in the UK, North America and India.

Hampson is world leader in the design and manufacture of close tolerance tooling and assembly systems for composite and metallic aero structures. The Group employs approximately 1,400 people worldwide.

Hampson Industries PLC is listed on the main market of the London Stock Exchange (Symbol: HAMP). For more information on Hampson: www.hampsongroup.com 

Hampson was advised in the transaction by Steen Associates LLP. For more information on Steen Associates: www.steenassociates.com