Acquisition of Slack & Parr and Adaptix update
7 August 2023
Avingtrans Plc
("Avingtrans" or the "Group")
Acquisition of Slack & Parr Limited and Adaptix Ltd update
Avingtrans plc, which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, is pleased to announce that its subsidiary Hayward Tyler Fluid Handling Limited ("Hayward Tyler") has completed the acquisition of certain assets of Slack & Parr Limited ("Slack & Parr") from administration, together with Slack & Parr's overseas subsidiaries in the USA and Asia for a total consideration of up to £4.9m (the "Acquisition") to be satisfied as follows:
· Up to £2.6m to acquire certain UK assets and the shares in Slack & Parr's USA & Asia subsidiaries (the "Subsidiaries") to be wholly satisfied in cash;
o Consideration for the Subsidiaries is at least £0.9m and up to a maximum of £1.2m contingent on confirmation of the Net Asset Value of the Subsidiaries post-completion;
· £2.3m to acquire certain leased assets subject to and to be wholly satisfied by lease financing.
About Slack & Parr
Slack & Parr is a family-owned manufacturer of specialist pumps and a market leading supplier of high-precision gear metering pumps, hydraulics flow dividers and industrial pumps to customers around the world. Founded in 1917, it has a strong track record in supporting global blue-chip OEMs and end users, with a large installed base, supported by service facilities in the USA and Asia. Slack & Parr operates from a 64,000 sq ft state-of-the-art manufacturing facility in Kegworth, Derbyshire and it also has facilities in Charlotte, North Carolina and Shanghai, China. The Acquisition has secured the employment of 100 skilled employees.
Slack & Parr entered into administration on 3 July 2023, following ongoing losses and funding issues. The last audited annual accounts to March 2022 reported revenue of £13.6m and a loss before tax of £1.9m. Avingtrans will acquire the UK Trade, IP, Fixed Assets and Stock and the Investments in Slack & Parr's US and China Subsidiaries. The Acquisition is expected to further strengthen Slack & Parr's market presence, improving operational efficiency and reinforcing its position as a leading force in the gear pump market, embracing innovation and delivering world-class products and services.
Slack & Parr has been acquired by Hayward Tyler, to capitalize on the common knowledge of specialist pumps. The integration phase will be managed by the Group's PSRE team, to optimize the cost base and to review all contracts and margins, whilst looking to strengthen its aftermarket activities.
Austen Adams, Divisional Managing Director at Avingtrans, said:
"We are pleased to have completed this acquisition, which brings another globally-respected, British heritage brand under the direction of the Avingtrans team. The sorts of challenges this business has faced are familiar to us and we are experienced in resolving them, having successfully turned around other businesses under similar circumstances. Slack & Parr's global footprint, combined with its well-invested operational capability, powerful brand, highly skilled workforce and large installed base provide a great opportunity to re-establish the business on a firm footing going forward."
Edward Barrington, Managing Director of Slack & Parr, added:
"We are delighted to be part of Avingtrans and eagerly anticipate the opportunities this partnership will unlock for the business. Together, we are confident we can build on our heritage of precision engineering and continue to provide our clients with the quality and reliability they have come to expect from us."
Update to the Acquisition of Adaptix
Further to its announcement on 13 July 2023 concerning the acquisition of Adaptix Ltd ("Adaptix"), Avingtrans can confirm that the offer to acquire Adaptix has been accepted by the majority of Adaptix shareholders and this transaction can now proceed to completion. Completion is subject to, inter alia, approval under the UK National Security & Investment Act, which we anticipate to be no later than the early part of September. A further announcement will be made in due course.
ENDS
Enquiries:
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Avingtrans plc Les Thomas, Interim Chairman Steve McQuillan, Chief Executive Officer Stephen King, Chief Financial Officer
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01354 692391 |
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Singer Capital Markets (Nominated Adviser and Broker) Shaun Dobson Alex Bond Oliver Platts
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02074 963000 |
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IFC Advisory (Financial PR) Graham Herring Tim Metcalfe Zach Cohen |
020 3934 6630 |
About Avingtrans plc:
Avingtrans designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy, medical and industrial markets worldwide.
Business units
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Hayward Tyler - Luton & East Kilbride, UK and USA, China and India
Specialises in the design, manufacture and servicing of performance-critical motors and pumps for challenging environments.
Energy Steel, Inc - Rochester Hills, Michigan, USA
Energy Steel, part of the Engineered Pumps and Motors Division of Avingtrans plc, has been serving the nuclear power industry since 1982 with capabilities in equipment fabrication, material supply, precision machining, engineering, and repair services. Through strategic OEM partnerships, it also provides solutions for obsolete nuclear components and support for the most complex projects.
Stainless Metalcraft Ltd - Chatteris, UK and Chengdu, China
Provider of safety-critical equipment for the energy, medical, science and research communities, worldwide, specialising in precision pressure and vacuum vessels and associated fabrications, sub-assemblies and systems.
Booth Industries - Bolton, UK
Designs, manufactures, installs and services doors and walls which can be tailored to be: blast &explosion proof; fireproof; acoustically shielded; high security/safety; or combinations of the above
Ormandy Group, Bradford, UK
Design, manufactures and servicing of off-site plant, heat exchangers and other HVAC (heating, ventilation and air conditioning) products
Composite Products Ltd - Buckingham, UK
Centre for composite technology, parts and assemblies, serving customers in industrial markets.
Magnetica Ltd - Brisbane, Australia
Magnetica Limited specialises in the development of next generation MRI technologies, including dedicated extremity MRI systems and MRI system components. Magnetica has successfully built and tested a compact, integrated 3 Tesla orthopaedic MRI system, demonstrating clinical-quality imaging. Commercialisation of this system (and others) is on-going. Magnetica's structure now includes two other business units:
Scientific Magnetics - Abingdon, UK
Designs and manufactures superconducting magnet systems and associated cryogenics for a variety of markets including MRI and provides services for Nuclear Magnetic Resonance instruments.
Tecmag Inc, Houston, USA
Designs, manufactures and installs instrumentation, including consoles, system upgrades, and probes, mainly for Magnetic Resonance Imaging (MRI) and Nuclear Magnetic Resonance (NMR) systems. |
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