TIDMAVG

RNS Number : 4059N

Avingtrans PLC

29 January 2016

29 January 2016

Avingtrans Plc

("Avingtrans" or the "Company" or the "Group")

Acquisition of Rolls-Royce pipe manufacturing business

Avingtrans (AIM:AVG) is pleased to announce that Sigma Components, which forms Avingtrans PLC's aerospace division, has agreed to acquire Rolls-Royce's internal pipe manufacturing businesses in Nuneaton, UK and Xi'an, China for GBP3.5m, which is being funded by the Company's existing debt facilities. Avingtrans designs, manufactures and supplies critical components, modules and associated services to the aerospace, energy and medical sectors

Sigma has developed a strong relationship with Rolls-Royce over a number of years, by supplying components for numerous engine programmes.

As well as strengthening the Group's UK manufacturing footprint, the Chinese facility complements the Group's existing operations in Chengdu and will further enhance Sigma's offering to global aerospace OEM's in this key growth region. 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 our 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. This acquisition will grow Avingtrans' Aerospace sales significantly, as Sigma continues to strengthen its position in the core markets of pipes, ducts and fabrications.

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 2016, the acquired assets are expected to be GBP3.5m 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."

For further information, visit www.sigmacomponents.com

Enquiries:

 
 Avingtrans plc                       Tel: 01159 
  Steve McQuillan, Chief Executive     499 020 
  Officer 
  Stephen King, Chief Financial 
  Officer 
 Numis                                Tel: 0207 
  David Poutney (Corporate Broking)    260 1000 
  Richard Thomas (Corporate Finance 
  and Nominated Adviser) 
 Newgate (Financial PR)               Tel: 020 7653 
  Adam Lloyd                           9850 
  Ed Treadwell

About Avingtrans

Avingtrans plc is engaged in the provision of highly engineered components, modules and services to the Aerospace, Energy and Medical markets worldwide.

The business is made up of two divisions

Aerospace, engaged in the manufacture of rigid pipe assemblies, fabrications and prismatic components - both metallic and composite - for the global aerospace market and precision polishing of aircraft components and;

Energy and medical, engaged in the design and manufacture of machined and fabricated pressure and vacuum vessels and process plant and equipment for the power, oil & gas and medical markets. Plus, design and manufacture of fabricated poles and cabinets for roadside safety cameras and rail track signalling.

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACQGLGDBIXDBGLC

(END) Dow Jones Newswires

January 29, 2016 02:00 ET (07:00 GMT)

Avingtrans (LSE:AVG)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Avingtrans Charts.
Avingtrans (LSE:AVG)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Avingtrans Charts.