Acquisition

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 (£15.3m⁽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 (£16.0m⁽¹⁾) and profit before interest, tax and depreciation of US$3.1m (£1.9m⁽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 £ sterling equivalents is $1.60 : £1 being the rate prevailing at the close of business on Friday 25 March 2011.

Further information

Mark Rollins	Group Chief Executive, Senior plc	[phone]
Simon Nicholls	Group Finance Director, Senior plc	[phone]
Clare Hunt	Finsbury Group	[phone]

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.

 

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