Morgan Advanced Materials Regulatory News (MGAM)

21 Dec 2007 07:00

Morgan Crucible Co PLC21 December 2007 The Morgan Crucible Company plc ("Morgan Crucible") agrees to acquire the Technical Ceramics businesses of Carpenter Technology Corporation for US$147 million Morgan Crucible is pleased to announce that it has agreed to acquire twotechnical ceramics businesses, Certech and Carpenter Advanced Ceramics, fromCarpenter Technology Corporation of the US. The businesses will be acquired on acash and debt free basis for a cash consideration of US$147 million (c. £73million). Certech manufactures a broad range of complex injection moulded ceramiccomponents. Certech is the global number one independent manufacturer of theseconsumable parts, which are used during the investment casting of turbine bladesand vanes for aerospace engines and industrial gas turbines, and some high endindustrial castings. The business also manufactures a range of other porousceramics and various foundry supplies. Certech has seven plants in the US, UKand Mexico and has approximately 750 employees. Carpenter Advanced Ceramics is a manufacturer of engineered ceramics productsvery similar to those of our existing Technical Ceramics operations. It sellshigh purity alumina and zirconia structural ceramic components for a variety ofapplications and industries and is a world leader in zirconia ceramics. Itoperates two plants, one in the US and one in Australia, and has approximately150 employees. Both acquisitions are strongly aligned with the Group's existing core ceramictechnology and with its strategic priorities of focusing on higher growth,higher margin, less economically cyclical markets. Following completion, Certechand Carpenter Advanced Ceramics will become part of Morgan Crucible's TechnicalCeramics division. In the financial year ended 30th June 2007 Certech and Carpenter AdvancedCeramics in aggregate reported US$91 million (c. £45 million) of revenue, anunderlying operating profit margin of over 15% and profit before tax of US$14.3million (c. £7.1 million). The acquisition will be immediately accretive to theGroup's operating profit margin and to its earnings per share, adding c.0.5pence in 2008.* Mark Robertshaw, Chief Executive Officer of Morgan Crucible, said: "Today'sacquisitions are in-line with our strategic priority of focusing on highergrowth, higher margin, less economically-cyclical markets. They also enhance ourhigh value-added offering to customers and reinforce the standing of ourTechnical Ceramics division as a global market leader in its chosen fields. Thestrength of our balance sheet has afforded us the flexibility to seek such valueaccretive acquisitions. Our Group overall order book remains robust and theoutlook for top line and margin growth is positive." Andrew Hosty, Chief Executive Officer of the Technical Ceramics division said:"This is an exciting addition to our Technical Ceramics business. It supportsour goal of delivering mid-teen margins and increases our presence in thegrowing aerospace sector." Enquiries:Victoria Gould, The Morgan Crucible Company plc 01753 837306Robin Walker / Clare Strange, Finsbury 020 7251 3801 Note for Class 2 purposes: As at 30th June 2007, Certech and Carpenter Advanced Ceramics had combined grossassets of $58.2 million (c £28.9 million). The closing of the transaction is subject to obtaining certain regulatoryclearances which are expected to be completed in early 2008. * Nothing in this announcement constitutes a profit forecast, and the impact ofthese acquisitions on Morgan Crucible's earnings per share and operating profitmargin in 2008 is not the only factor likely to give rise to a change from thefigures reported in the previous financial period. This information is provided by RNS The company news service from the London Stock Exchange