RNS Number:3421K
Senior PLC
20 December 2007

Senior plc acquires Capo Industries, Inc.

Senior plc ("Senior") is pleased to announce that it has acquired 100% of the
issued share capital of Capo Industries, Inc. ("Capo" or the "Company"), for a
cash consideration of US$ 85.0m (�41.9m (1)), less the amount of any outstanding
indebtedness of Capo upon completion of the acquisition.  The Board intends to
fund the transaction through the utilisation of existing debt facilities and a
new �20m short-term facility.

In addition, Senior will assume approximately $3.0m of tax liabilities of the
Sellers which arise as a result of the disposal of the Company to Senior.
Further consideration of up to US$ 5.0m (�2.5m (1)), is payable in 2009
conditional upon the actual results of 2008.

Completion of the acquisition is subject to a number of conditions, including
that related to the US Hart Scott Rodino Antitrust Improvements Act 1976, and
completion is expected to occur towards the end of January 2008.

The acquisition is expected to be immediately earnings enhancing.

Capo, which is located in Chino near Los Angeles in California, USA was
purchased by its current owners, David Feltch (the President and CEO) and his
wife, in 1989.  It is a leading manufacturer of highly engineered, complex
super-alloy components primarily for the aero-engine market.  The Company
provides flight-critical components for propulsion and auxiliary power unit
(APU) aero-engines for growing established and new programmes such as the Boeing
737, 777 and 787, the Airbus 320 and 380, the military Joint Strike Fighter
aircraft and an array of business jets such as General Dynamics' Gulfstream,
Bombardier's Challenger and Dassault's Falcon.

Capo focuses on complex, high value-added components including intermediate
cases, engine yoke assemblies, diffusers, turbine nozzles, low pressure turbine
cases, combustor cases, bearing housings and turbine shafts.  These parts are
typically made of premium metals such as titanium, inconel and other
super-alloys.  The Company's largest customers include Honeywell and Hamilton
Sundstrand.

The Company has a strong management team, led by Dave Feltch, all of whom are
staying with the business following its acquisition by Senior.

For the year to 31 December 2007, Capo is forecasting sales of US$ 35.5m (�17.5m
(1)) and pro-forma(2) profit before interest and tax of US$ 8.9m (�4.4m(1)).  As
at 31 December 2006 gross assets were US$ 20.6m (�10.1m(1)).  Sales for the year
ended 31 December 2006 were US$ 29.3m and pro-forma profit before interest and
tax was US$ 6.9m.

The acquisition of Capo is in line with Senior's strategic objective to expand
its aerospace presence and capability and the Board of Senior believe that the
acquisition 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;

*  The benefit of 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, further
enhances the Group's aerospace presence and capabilities and I am delighted to
welcome Dave and all the Capo employees to our Group.  The addition of Capo
means that the Group is even better placed for the future."



Notes

(1) The exchange rate used for the above � sterling equivalents is $2.03 : �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.


For further information please contact:
Graham Menzies, Group Chief Executive, Senior plc                   01923 714702
Mark Rollins, Group Finance Director, Senior plc                    01923 714738
Adrian Howard, Finsbury Group                                      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 eleven
countries. Senior designs, manufactures and markets high technology components
and systems for the principal original equipment producers in the worldwide
civil aerospace, defence, diesel engine, exhaust system and energy markets.

                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

ACQURRRRBNRUURA
Senior (LSE:SNR)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Senior Charts.
Senior (LSE:SNR)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Senior Charts.