Morgan Advanced Materials Regulatory News (MGAM)

1 Aug 2007 07:01

Morgan Crucible Co PLC01 August 2007 THE MORGAN CRUCIBLE COMPANY PLC ("MORGAN CRUCIBLE") ACQUIRES A 49% STAKE IN NP AEROSPACE Morgan Crucible is pleased to announce that it has acquired a 49% equity stakein NP Aerospace from the Carlyle Group and from management. The transactionvalues NP Aerospace at £71m including fees and is expected to be immediatelyearnings enhancing for Morgan Crucible. NP Aerospace is a composite technical moulding business that develops,manufactures and markets ballistic and non-ballistic products in the defence andcivil sectors. It is based in Coventry, UK with 200 employees and has a strongposition in the UK with the Ministry of Defence. NP Aerospace has a high degreeof experience and expertise in vehicle armour and enjoys unique areas ofapplication know-how in products such as military helmets and blast protectionsuits. Management will initially retain a 51% equity stake and a phased process is inplace for Morgan Crucible to acquire a further 21% of the equity after threeyears and move to full ownership in the three years thereafter. The initial 49%equity stake values NP Aerospace at 6.5 times 2006 EBITDA. The considerationpayable for the future equity purchases will be based on 7.25 times the EBITDAof the company for the calendar year preceding the date of each purchase. Mark Robertshaw, Chief Executive Officer of Morgan Crucible, said:"I am delighted to welcome NP Aerospace to the Group. This acquisition supportsour strategy of finding businesses that will enhance our existing core productranges. NP Aerospace will supplement our strong materials capability andsignificant geographic reach. Its committed team with their unique knowledgewill play a vital role in developing and expanding our presence within thedefence market." Mark Lejman, Director of Morgan Crucible and head of Morgan Crucible Armour, said: "This transaction with NP, coming on the back of investments in ceramicmaterials technology, further strengthens Morgan Crucible's commitment in the UKto finding innovative solutions for ballistic protection in the field of bothbody armour and vehicle armour." Notes for Class 2 purposes: The initial investment from Morgan Crucible will be £41.0 million structured as£36m in a shareholder loan paying 10% per annum, £4.5m in preference sharesyielding 8% per annum, and £0.5m for ordinary equity. NP Aerospace managementare also contributing £4.5m in preference shares and £0.5m of ordinary equity. In 2006 NP Aerospace revenues were £46.0 million and EBITDA £11.0 million, amargin of 23.7%. Profit before tax for 2006 was £5.4m. As at 31st December 2006NP Aerospace had gross assets of £39.8 million.(All the above numbers are quoted from statutory accounts based on UK GAAP) Enquiries: Victoria Gould The Morgan Crucible Company plc 01753 837306 Robin Walker Finsbury 020 7251 3801 This information is provided by RNS The company news service from the London Stock Exchange