Senior PLC Acquisition (2726Q)

TIDMSNR

RNS Number : 2726Q

Senior PLC

05 November 2012

Senior plc acquires GAMFG Precision

Senior plc ("Senior") is pleased to announce that it has acquired 100% of the issued share capital of GAMFG Precision LLC and its parent company GAMCO Acquisition Company (collectively "GA") from its majority shareholder Mason Wells, a private equity investor firm based in Milwaukee, Wisconsin, and two other minority shareholders.

GA, located in Franklin, Wisconsin (approximately 15 miles south of Milwaukee), is principally a manufacturer of engineered high-precision machined components and assemblies for the off-road land vehicle and aerospace markets.

GA specialises in the machining of precision components for fuel systems, pumps and hydraulic systems primarily for off-road heavy-duty diesel engine applications, but with a growing presence in the aerospace industry. Its largest customer is Caterpillar Inc., with Sauer-Danfoss Inc., Parker Hannifin Corporation and Woodward Inc. also important purchasers of GA product. GA's components and capabilities are highly complementary to Senior's existing portfolio: largely in the land vehicle emission control segment today but also increasingly with its aerospace operations in the future.

The total consideration for the purchase of GA was $45.0m, subject to adjustments for cash in the business, working capital at completion and 2013 business performance, in the event it is above expectation. The transaction was funded through the utilisation of existing cash and debt facilities.

For the twelve months to 31 December 2011, GA reported sales of $64.6m and earnings before interest, tax, depreciation and amortisation ("EBITDA") of $9.7m. The unaudited management accounts of the business for the nine months to the end of September 2012 show sales of $45.4m and EBITDA of $6.2m. Gross assets of the business are approximately $24.8m.

The existing GA management team will continue to manage the business, which will operate within Senior's Flexonics Division.

The acquisition is expected to be immediately earnings enhancing.

Commenting on the acquisition, Mark Rollins, Senior Group Chief Executive, said:

"I am very pleased to announce the acquisition of GA and to welcome all of its employees to the Senior Group. GA represents an excellent strategic addition to Senior's Flexonics Division. It is located in the mid-west of the USA, close to both its major customers and the Group's existing Bartlett facility, which provides an excellent opportunity to optimise the combined commercial and operational performance of both businesses.

GA has a well established reputation in the off-road heavy-duty diesel engine market and has a growing presence in the commercial aerospace industry. Its high-precision machining capabilities, which are new to Senior, combined with Senior's wider market access and financial strength, are expected to enhance the growth prospects of both the Group's Flexonics and Aerospace Divisions."

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 
 Philip Walters    Finsbury Group                   +44 (0) 20 7251 3801

About Senior

Senior is an international manufacturing group with operations in 13 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. It operates through two Divisions: Aerospace (64% of H1 2012 revenue) and Flexonics (36% of H1 2012 revenue). 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

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