Avingtrans subsidiary buys Rolls-Royce pipe business

AEROSPACE giant Rolls-Royce has sold its Nuneaton-based internal pipe manufacturing business to Sigma Components, a subsidiary of Avingtrans, for £3.5m.

The acquisition also includes a facility in Xi’an, China.

Avingtrans designs, manufactures and supplies components, modules and associated services to the aerospace, energy and medical sectors. It has a number of subsidiaries across the Midlands.

It is funding the deal from its existing debt facilities.
 
Sigma has developed a strong relationship with Rolls-Royce over a number of years, by supplying components for numerous engine programmes.

This acquisition will grow Avingtrans’ Aerospace sales significantly, as Sigma continues to strengthen its position in the core markets of pipes, ducts and fabrications.

Avingtrans says that as well as strengthening the group’s UK manufacturing footprint, the Chinese facility complements its existing operations in Chengdu and will further enhance Sigma’s offering to global aerospace OEMs in a key growth region.

It suggests the acquisition will also reinforce the company’s position in several key engine programmes – notably the Trent XWB – and provide a strong platform from which to grow sales across a wider product range.
 
Sigma will use the combined capabilities of its UK and Chinese facilities to offer “competitive commercial terms” to Rolls-Royce, as the XWB programme grows rapidly. 

Rolls-Royce’s internal pipe manufacturing business employs 132 people at its Nuneaton facility, with an additional 110 personnel working at its Xi’an site.

Operations will continue at both sites following the completion of the deal.
 
At completion, around the beginning of March, the acquired assets are expected to be £3.5m and, in the previous financial year, to December 2015, the business traded at an approximately break-even level.
 
Steve McQuillan, CEO of Avingtrans, said: “This acquisition is a key part of our strategy to support Sigma’s growth with investment in businesses and technologies that complement our existing capabilities.

“We are delighted to be working with Rolls-Royce on these major programmes.”

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