Avingtrans sells aerospace business for £65m
Avingtrans, the Nottingham-based manufacturer of engineered components, systems and services to the aerospace, energy, medical and traffic management industries, has revealed it is to sell its aerospace division – Sigma Components – to Silverfleet Capital Partners for £65m
Silverfleet Capital is a European private equity firm, specialising in mid-market buyouts.
Following the proposed deal, Avingtrans says it will return a “substantial portion” of the proceeds of sale to shareholders.During the financial year ended 31 May 2015, Sigma reported revenue of £35.3m and operating profit of £3.3m.
In March 2016, the company bought Rolls-Royce’s internal pipe manufacturing businesses in Nuneaton, UK and Xi’an, China for £3.5m, which is expected to be at least break even in the current financial year.
As well as partly repaying the company’s existing debts, the retained portion of the sale proceeds will be used to continue to build Metalcraft’s leadership in Energy related markets (notably in the nuclear sector) and potentially in other high value engineering niches, where the Board believes that it can use its turnaround expertise to add substantial shareholder value.
Steve McQuillan, CEO of Avingtrans, said: “I am delighted to announce the agreement to sell the Aerospace Division.
“Following a strategic review the Board concluded that it was the right time to consider the disposal of the Aerospace business which had achieved the majority of its targets.
“This transaction further demonstrates Avingtrans’ track record in growing successful businesses and realising value for shareholders.
“The proceeds of this transaction will enable the return of substantial value to shareholders while also providing additional investment for the Energy and Medical businesses where the Board believes there are exciting prospects which have the potential to deliver significant further value for shareholders.”
