Senior PLC Disposal (3093R)
March 05 2021 - 2:00AM
UK Regulatory
TIDMSNR
RNS Number : 3093R
Senior PLC
05 March 2021
5 March 2021
Senior plc: Agreement to divest Senior Aerospace Connecticut
Senior plc ("Senior" or the "Group"), an international
manufacturer of high technology components and systems, principally
for the worldwide aerospace & defence, land vehicle and power
& energy markets, today announces the divestiture of Senior
Aerospace Connecticut, our stand alone, build-to-print helicopter
structures operating business to PCX Aerosystems , LLC. for $74m
(GBP53m)(1) .
Senior Aerospace Connecticut is a build-to-print manufacturer of
precision metallic parts for the aerospace industry, supplying
machined parts from bar stock, forgings and castings for rotorcraft
and turbine engines. It is the only operating business in the Group
whose primary focus is build-to-print parts for the rotary sector
and we believe it is better suited to a larger organisation, which
is primarily focused on that market. The business has approximately
100 employees based in Enfield, Connecticut, USA.
Net cash proceeds from the transaction are expected to be
approximately $66m ( GBP47m)(1) , after working capital
adjustments, taxes and other transaction-related costs.
Consideration is payable in cash at completion and subject to
customary completion adjustments.
During the year to 31 December 2019, Senior Aerospace
Connecticut generated revenue of $43.1m (GBP33.7m)(2) , with EBITDA
of $6.5m (GBP5.1m) and operating profit of $4.9m (GBP3.8m). These
figures were consolidated within the results of Senior Aerospace in
2019. As at 30 June 2020, gross assets subject to the transaction
amounted to $12.4m (GBP10.0m)(3) and goodwill allocated to this
cash generating unit that will be written-off on disposal amounted
to $20.9m (GBP16.9m)(3) . Further details will be made available in
our 2020 full year results on Monday 8 March 2021.
The divestiture is consistent with Senior's strategy to review
the overall portfolio of our businesses and evaluate their
strategic fit within the Group. The net proceeds will be used to
further strengthen Senior's balance sheet and provide greater
flexibility for the Group to operate within its capital deployment
framework.
David Squires, CEO of Senior plc said: "I am confident that the
divestment of Senior Aerospace Connecticut is in the best interests
of all of our stakeholders. It is a good business, which is
reflected in the transaction value, and I believe that it is best
able to fulfil its potential by being part of a larger helicopter
structures business. We have a great leadership team in Connecticut
with a capable and talented workforce: I would like to thank them
for their loyal service to Senior plc and wish them all the best
for the future."
The transaction is expected to close in H1 2021, subject to
customary closing conditions.
Lazard & Co., Limited acted as exclusive financial adviser
and Buchanan Ingersoll & Rooney PC as legal adviser to Senior
on the transaction.
Notes
This announcement contains inside information.
(1) At the current US Dollar exchange rate of $1.40.
(2) The US Dollar exchange rate applied in the translation
of revenue, profit and cash flow items at average rates
for 2019 was $1.28.
(3) The US Dollar exchange rate applied to the balance sheet
at 30 June 2020 was $1.24.
Further information
Group Finance Director, Senior +44 (0) 1923 714
Bindi Foyle plc 725
Director of Investor Relations, +44 (0) 1923 714
Jennifer Ramsey Senior plc 722
+44 (0) 7796 708
Richard Webster-Smith Finsbury 551
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 power & energy markets. Further
information on Senior plc may be found at: www.seniorplc.com
About PCX Aerosystems
PCX Aerosystems is a leading provider of flight-critical,
life-limited dynamic components and systems for demanding aerospace
applications. Further information on PCX Aerosystems may be found
at: www.pcxaero.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.
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END
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