Acquisition (6912D)
March 28 2011 - 2:00AM
UK Regulatory
TIDMSNR
RNS Number : 6912D
Senior PLC
28 March 2011
Senior plc acquires Damar Machine Company
Senior plc ("Senior") is pleased to announce that it has
acquired 100% of the issued share capital of Damar Machine Company
and two small related legal entities operating from the same
facilities (collectively "Damar"). Damar, a privately held business
located in Washington State, USA, is principally a manufacturer and
integrator of precision machined parts and assemblies for the
commercial aerospace industry. It specialises in air beams, wing
skins, stow-bin parts, interior decorative assemblies, panels and
bulk-head components, manufactured from aluminium, titanium and
other specialist metals.
The business, like Senior's existing Aerospace Division, has
content on each of Boeing's 737, 747, 767, 777 and 787 platforms,
with Boeing commercial aircraft representing some 88% of Damar's
revenue in 2010. Over the past year, Boeing has announced
build-rate increases for all of these aircraft types and,
consequently, the future prospects for Damar, and Senior Aerospace,
appear highly encouraging.
The total consideration for the purchase is estimated at
US$24.5m (GBP15.3m(1) ), which is being paid through a combination
of an upfront cash payment, the assumption of net debt on
acquisition and a payment dependent upon the level of working
capital in the business at completion. The Board intends to fund
the transaction through the utilisation of existing cash
resources.
For the year to 31 December 2010, Damar reported sales of
US$25.6m (GBP16.0m(1) ) and profit before interest, tax and
depreciation of US$3.1m (GBP1.9m(1) ). The acquisition is expected
to be immediately earnings enhancing.
Commenting on the acquisition, Mark Rollins, Senior plc Group
Chief Executive, said:
"I am delighted to welcome Damar's employees to the Senior
Group. Damar has a long and established reputation in the aerospace
industry and its operations are highly complementary to Senior's
existing business. Damar's capabilities, combined with Senior's
wider market access, financial strength and operational excellence
focus, are expected to lead to stronger growth prospects and
improved operational performance, benefiting customers, employees
and shareholders alike."
Note:
(1) The exchange rate used for the above GBP sterling equivalents
is $1.60 : GBP1 being the rate prevailing at the close
of business on Friday 25 March 2011.
Further information
Group Chief Executive, Senior
Mark Rollins plc +44 (0) 1923 714 738
Group Finance Director,
Simon Nicholls Senior plc +44 (0) 1923 714 722
Clare Hunt Finsbury Group +44 (0) 20 7251 3801
About Senior
Senior is an international manufacturing group with operations
in 11 countries. It is listed on the main market of the London
Stock Exchange (symbol SNR). Senior designs, manufactures and
markets high technology components and systems for the principal
original equipment producers in the worldwide aerospace, defence,
land-vehicle and energy markets. Further information on Senior plc,
may be found at: www.seniorplc.com
Cautionary Statement
This announcement contains certain forward-looking statements.
Such statements are made by the Directors in good faith based on
the information available to them at the time of the announcement
and they should be treated with caution due to the inherent
uncertainties underlying any such forward-looking information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQUVAWRAAAOUAR
Senior (LSE:SNR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Senior (LSE:SNR)
Historical Stock Chart
From Jul 2023 to Jul 2024