5th Mar 2021 10:10
(Alliance News) -Â Senior PLC on Friday said it is selling its helicopter parts business to PCX Aerosystems LLC for USD74 million.
The business, Senior Aerospace Connecticut, is the only one in the Senior group whose primary focus is build-to-print parts for the rotary sector, and the firm believes it is "better suited" to a larger organisation that is focused on that market. Build-to-print means making products to the exact specifications of the customer.
In 2019, US-based Senior Aerospace Connecticut generated revenue of USD43.1 million with earnings before interest, taxes, depreciation and amortisation of USD6.5 million.
Net cash proceeds from the transaction are expected to be around USD66 million after working capital adjustments, taxes and other transaction-related costs. The consideration will be payable in cash at completion.
The sale is in line with Senior's strategy of reviewing its portfolio and evaluating the strategic fit of its businesses within the group. The proceeds will be used to strengthen the balance and provide greater flexibility to operate within its capital deployment framework.
"I am confident that the divestment of Senior Aerospace Connecticut is in the best interests of all of our stakeholders. It is a good business, which is reflected in the transaction value, and I believe that it is best able to fulfil its potential by being part of a larger helicopter structures business," said Chief Executive David Squires.
The deal is expected to close in the first half of this year.
Shares in Senior were down 0.8% at 107.90 pence in London on Friday.
By Lucy Heming;Â [email protected]
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