14th Jun 2007 11:26
UMECO PLC14 June 2007 14 June 2007 Umeco expands its composites activities with acquisition of J. D. Lincoln Inc Umeco plc ("Umeco"), an international provider of supply chain and repair andoverhaul services and advanced composite materials primarily to the aerospace &defence industries, announces the significant expansion of its compositematerials business with the acquisition of J. D. Lincoln Inc. ("Lincoln") for aninitial cash consideration of $59.5 million (£30.2 million) on a cash and debtfree basis. Additional cash consideration of up to $15.0 million is payablebased on the EBITDA of Lincoln in the twelve months after completion. Lincoln, a privately owned business based at two sites in California, formulatesand manufactures a range of pre-preg materials primarily used by aerospace tier2 suppliers for the manufacture of composite interior structures of commercialaircraft. It is therefore highly complementary to Umeco's existing aerospacecomposites activities which are focused on the airframe. Lincoln has a widerange of qualifications, including those recently added for the Boeing 787 andthe Airbus 380. In the year ended 31 December 2006 Lincoln generated a profit before tax of $0.2million after making non-recurring payments to the vendors of $6.0m million. Thegross assets of Lincoln as at 31 December 2006 were $6.2 million. Theacquisition is expected to be earnings enhancing in the current financial year. Clive Snowdon, Chief Executive of Umeco plc, said: "This acquisition is our largest since that of the Advanced Composites Group in2004, and represents a major investment in our composites activities. "Lincoln is growing strongly, through its expanding range of new applicationsand qualifications and with the continuing growth of the civil aerospaceindustry. The composites world is entering a new era, with more aircraftmanufacturers using the light weight, durable properties of composites for awider range of applications. With the addition of Lincoln, Umeco Composites iseven better placed to capitalise on these opportunities in the future." Scott Lincoln, currently Vice President Operations of Lincoln, will becomePresident of Lincoln on completion of the acquisition and is expected to staywith the business for a minimum of four years, reporting to Andrew Moss, ChiefExecutive of Umeco Composites. The other two shareholders, JD Lincoln and MikeBurkitt, are expected to remain with the business in senior management roles forat least the first year following completion of the acquisition. The acquisition, which will be funded through Umeco's recently increased debtfacilities, is subject to regulatory clearance under Hart Scott Rodino andExon-Florio and is expected to complete within the next 45 days. - Ends - For further information, please contact: Umeco plc Clive Snowdon, Chief Executive 01926 331800 Hogarth Partnership Ltd John Olsen / Barnaby Fry 020 7357 9477 Further information on J.D. Lincoln is available at http://www.jdlincoln.com Note: the financial information in relation to Lincoln has been extracted fromthe unaudited financial records of Lincoln. Umeco plc Umeco is a leading innovator in distribution, supply chain management and repairand overhaul services to the aerospace and defence industries, harnessing newmethods for enhancing its customers' performance and profitability. Umeco also has significant manufacturing interests in advanced compositematerials for a growing range of applications in its core aerospace and defencemarkets and in other high performance technology industries such as motor sport,automotive and wind energy. Listed on the London Stock Exchange, Umeco had turnover of £333.9 million in theyear to 31 March 2007. Umeco is managed through three divisions:- Umeco Composites - a provider of a complete range of advanced compositematerials and specialist chemical products principally to the aerospace,motorsport, automotive and wind energy markets. A growing range of value-addedoutsourcing services is provided to major customers. Customers include Boeing, Airbus, BAE SYSTEMS, Goodrich Aerostructures, BritishAirways, Lufthansa Technik, a number of manufacturers of high performance supercars and Formula 1 teams including Team McLaren Mercedes. Umeco Supply Chain - a leading international provider of value-addeddistribution and supply chain outsourcing services to customers in the aerospace& defence market. With its specialisation in the supply of small components andsophisticated IT systems, its growing global customer base can enjoy significantoperational, cost and working capital benefits. Customers include Rolls-Royce plc, BAE SYSTEMS, Safran Group, Parker Aerospace,Goodrich, Thales, Aerospace, Turbomeca, Lockheed Martin and the US Department ofDefense. Umeco Repair and Overhaul - a provider of a comprehensive accessory repair andinstallation service to operators of fixed and rotary wing aircraft ranging insize from executive jets through to a Boeing 747. Customers include British Airways, KLM, Swiss, Alitalia Express, BristowHelicopters, BAE SYSTEMS, Saab Aircraft and Pratt & Whitney. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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