Senior PLC Acquisition (8481B)
March 10 2014 - 3:00AM
UK Regulatory
TIDMSNR
RNS Number : 8481B
Senior PLC
10 March 2014
Aerospace & Energy acquisition with operations in Malaysia
& China
Senior plc ("Senior" or the "Group") is pleased to announce that
it has entered into an agreement to acquire 100% of the issued
share capital of UPECA Technologies Sdn. Bhd. ("UPECA") for an
expected aggregate consideration of MYR415m (GBP75.5m) from
Millennium Arena Sdn. Bhd., a holding company for UPECA's private
shareholders.
The acquisition is expected to complete towards the end of March
following receipt of the customary consents required for such a
transaction.
UPECA is a Malaysian-based manufacturer of high-precision
engineered components serving the Aerospace & Energy sectors.
The business, originally founded by its current majority
shareholder, has over 20 years of manufacturing experience and
enjoys strong relationships with 'blue chip' customers across all
of its markets.
UPECA has two manufacturing facilities in Malaysia, one selling
to the aerospace industry and the other to the energy market, and a
third facility in China, which is located in Tianjin and
specialises in energy applications. The two Malaysian facilities
are located approximately 30 minutes apart on the outskirts of
Kuala Lumpur. UPECA employs around 625 people across its three
operations and the existing management team will continue to manage
the business post acquisition.
Approximately one third of UPECA's revenue currently derives
from the aerospace market and two thirds from the energy, oil and
gas market. Prospects for healthy future growth for UPECA are
clearly evident from the high level of customer interest in the
Asia-Pacific region for both these markets.
The total consideration for the acquisition of 100% of UPECA is
expected to be MYR415m (GBP75.5m)(1) , of which MYR320m (GBP58.2m)
will be paid in cash at completion and an estimated MYR95m
(GBP17.3m) of net debt will be assumed by Senior. The acquisition
will be funded using the Group's cash and existing borrowing
facilities.
For the year ended 31 March 2013, UPECA reported sales of
MYR154m (GBP28.0m) and trading profit before interest, tax and
depreciation of MYR35m (GBP6.3m). For the year ending 31 March
2014, UPECA expects to report sales of MYR172m (GBP31.3m) and
profit before interest, tax and depreciation of MYR41m
(GBP7.4m).
Gross assets of the business at 31 March 2013 were MYR174m
(GBP31.6m).
The acquisition is expected to be immediately earnings
enhancing.
Commenting on the acquisition, Mark Rollins, Senior's Group
Chief Executive, said:
"I am very pleased to announce the acquisition of UPECA and to
welcome all of its employees to the Senior Group. UPECA represents
an excellent addition to Senior's portfolio, strengthening the
Group's aerospace and energy market presence in the increasingly
important South East Asian region. UPECA's 20 years of experience,
its impressive capabilities and its own strong customer
relationships, combined with Senior's wider market access and
financial strength, are expected to create an excellent platform to
enhance the future growth prospects for the whole Senior
Group."
Note: (1) an exchange rate of GBP1 : MYR5.5 has been assumed
Further information
Group Chief Executive, Senior
Mark Rollins plc +44 (0) 1923 714 738
Group Finance Director, Senior
Derek Harding plc +44 (0) 1923 714 722
Philip Walters RLM 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. Further information on Senior plc
may be found at: www.seniorplc.com
About UPECA
A privately held company, in operation since 1990, UPECA is
backed by over 20 years of experience in offering innovative
precision machining, engineering and manufacturing solutions to its
global multinational customers. UPECA delivers value and innovation
to its global customers through its Aerospace Division and Energy,
Oil & Gas Division. Further information on UPECA may be found
at: www.upeca.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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