Acquisition
August 17 2010 - 2:00AM
UK Regulatory
TIDMSNR
RNS Number : 1582R
Senior PLC
17 August 2010
Senior plc acquires WahlcoMetroflex, Inc.
Senior plc ("Senior") is pleased to announce that it has acquired 100% of the
issued share capital of WahlcoMetroflex, Inc. ("WMX"), a manufacturer of
dampers, expansion joints and exhaust gas systems for the global power
generation, refinery and chemical processing industries. WMX is located in
Maine, USA, with its products and markets being highly complementary to those of
the Group's existing, and successful, Senior Flexonics Pathway operation.
WMX, which began trading in 1972, was owned by seven individual shareholders
prior to the transaction. Six of the shareholders are currently active in the
business and the majority are expected to remain with the business after
acquisition. WMX will continue to operate from its current facility.
The total consideration for the purchase is estimated at US$13.3m (GBP8.5m(1)),
which is being paid through a combination of cash at completion, the assumption
of net debt on acquisition and a payment dependent upon the level of working
capital in the business at acquisition. The Board intends to fund the
transaction through the utilisation of existing debt facilities.
For the year to 31 December 2009, WMX reported sales of US$ 22.7m (GBP14.6m(1))
and profit before interest and tax of US$ 3.1m (GBP2.0m(1)). Net assets of WMX
at 30 June 2010 were US$ 3.9m (GBP2.5m(1)) with the business reporting sales of
US$ 9.7m (GBP6.2m(1)) and profit before interest and tax of US$ 1.1m
(GBP0.7m(1)) for the six month period to 30 June 2010. The acquisition is
expected to be immediately earnings enhancing.
Commenting on the acquisition, Mark Rollins, Senior Group Chief Executive, said:
"I am delighted to welcome all of WMX's employees to the Senior Group. WMX is a
long established leader in the design and manufacture of products for the safe
handling of hot gases for industrial processes in North America. These
capabilities, combined with the global market leadership of Senior Flexonics
Pathway and the financial strength of the Senior Group, can be expected to
provide an enhanced range of solutions for customers across the world, so
bringing benefits to employees and shareholders alike."
Notes
+--+---------------------------------------------------------------+
| (1)| The exchange rate used for the above GBP sterling equivalents |
| | is $1.56 : GBP1 being the rate prevailing at the close of |
| | business on Friday 13 August 2010. |
+--+---------------------------------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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