Senior Regulatory News (SNR)

28 Jan 2008 07:00

Senior PLC28 January 2008 Senior plc completes acquisition of Capo Industries, Inc. ('Capo') Senior is pleased to announce that all of the conditions of the purchaseagreement between Capo, the Capo shareholders and Senior Operations Inc.,including the conditions relating to the US Hart Scott Rodino Anti-trustImprovements Act 1976, have been satisfied and the acquisition has completed. The agreement to purchase Capo was originally announced on 20 December 2007. The acquisition is expected to be immediately earnings enhancing. The acquisition of Capo is in line with Senior's strategic objective to expandits aerospace presence and capability and the Board of Senior believe that theacquisition of Capo offers many benefits and opportunities including: • The acquisition of a well established, profitable business with strong growth prospects;• An immediate enhancement to Group earnings per share;• An increased presence in the buoyant commercial wide-bodied and business jet markets;• An increased presence at a number of market leading customers;• A stand alone business with an exceptional management team;• Additional Group sales and profits with minimal increase in central and divisional costs. Commenting on the acquisition, Graham Menzies, Senior's Group Chief Executive, said: "The acquisition of Capo, a very well invested and growing business, furtherenhances the Group's aerospace presence and capabilities and I am delighted towelcome Dave and all the Capo employees to our Group. The addition of Capo meansthat the Group is even better placed for the future." For further information please contact: Senior plc Graham Menzies Group Chief Executive 01923 714702Mark Rollins Group Finance Director 01923 714738 Finsbury Group Adrian Howard 020 7251 3801 This announcement, together with other information on Senior plc may be found at: www.seniorplc.com Note to Editors: Senior is an international manufacturing group with operations in elevencountries. Senior designs, manufactures and markets high technology componentsand systems for the principal original equipment producers in the worldwidecivil aerospace, defence, diesel engine, exhaust system and energy markets. Capo, which is located in Chino near Los Angeles in California, USA waspurchased by its current owners, David Feltch (the President and CEO) and hiswife, in 1989. It is a leading manufacturer of highly engineered, complex super-alloy components primarily for the aero-engine market. The Company providesflight-critical components for propulsion and auxiliary power unit (APU) aero-engines for growing established and new programmes such as the Boeing 737, 777and 787, the Airbus A320 and A380, the military Joint Strike Fighter aircraftand an array of business jets such as General Dynamics' Gulfstream, Bombardier'sChallenger and Dassault's Falcon. Capo focuses on complex, high value-added components including intermediatecases, engine yoke assemblies, diffusers, turbine nozzles, low pressure turbinecases, combustor cases, bearing housings and turbine shafts. These parts aretypically made of premium metals such as titanium, inconel and othersuper-alloys. The Company's largest customers include Honeywell and HamiltonSundstrand. The Company has a strong management team, led by Dave Feltch, all of whom arestaying with the business following its acquisition by Senior. For the year to 31 December 2007, Capo is forecasting sales of US$ 35.5m (£18.1m (1)) and pro-forma(2) profit before interest and tax of US$ 8.9m (£4.5m(1)). The net cash consideration, to be funded by Group debt facilities,is $85m (£43.4m (1)). Notes (1) The exchange rate used for the above £ sterling equivalents is $1.96 : £1. (2) Proforma profit before interest and tax is the reported profit before interest and tax of the Company after making adjustments for the exceptional costs incurred by the shareholders over and above that normally associated with the costs of such management positions. This information is provided by RNS The company news service from the London Stock Exchange