18th Oct 2007 13:19
UMECO PLC18 October 2007 18 October 2007 Proposed Disposal of Repair & Overhaul Division Umeco plc ("Umeco") announces the proposed disposal (the "Proposed Disposal") ofits Repair and Overhaul Division ("R & O Division"), to AMETEK Inc. ("AMETEK")for a cash consideration of £36.0 million. The Proposed Disposal will beeffected by way of the sale of the entire issued share capital of AEM Limitedand Antavia SAS to Ametek Holdings B.V., a wholly owned subsidiary of AMETEK. The Proposed Disposal will allow Umeco to focus on its larger and core compositematerials and supply chain activities. In addition, the proceeds of the ProposedDisposal will be used by Umeco initially to reduce Group borrowings. The R & O Division provides a comprehensive accessory repair and installationservice to operators of fixed and rotary wing aircraft, from facilities in theUK, France and Singapore. In the year to 31 March 2007, it generated operatingprofit of £2.7 million(1). As at 31 March 2007, its gross assets were £33.1million, with net assets of £22.0 million. AMETEK is a leading global manufacturer of electronic instruments andelectromechanical devices with annualised sales of approximately £1 billion. Ithas approximately 10,000 employees at more than 70 manufacturing locations andover 70 sales and service operations in the United States and more than 30 othercountries. The Proposed Disposal will allow Umeco to focus on its two core businessstreams: • Umeco Composites, which provides a broad range of advanced composite materials and specialist chemical products principally to the aerospace, motorsport, automotive and wind energy markets; and • Umeco Supply Chain, a leading international provider of value-added distribution and supply chain outsourcing services primarily to OEM customers in the aerospace and defence markets. The Proposed Disposal is subject to consultation with the Works Council ofAntavia SAS and clearance being received from the German anti-trust authorities.Provided that there is no material adverse change to the R&O Division, Umeco andAMETEK will enter into the definitive sale and purchase agreement ("SPA") andcomplete the Proposed Disposal as soon as these processes are completed. The SPA will include adjustments for cash, debt and working capital and, as partof the Proposed Disposal, Umeco will assume the obligation to pay approximately£3 million of deferred consideration in relation to the 2004 purchase ofAvionics Mobile Services Limited by AEM Limited. Contd./ 2 - 2 - Clive Snowdon, Chief Executive of Umeco, said: "This is a strategically significant move for Umeco. "By disposing of our R & O operations, we will be able to focus all of ourmanagement and financial resources on further developing our two core businessesof Composites and Supply Chain. With their greater scale and market positioning,these offer significantly more attractive growth opportunities for the UmecoGroup. "The markets in which these businesses operate are buoyant and, in both cases,we have well-developed plans for organic and acquisitive growth. The ProposedDisposal will leave us even better positioned to convert those opportunitiesopen to us." Catalyst Corporate Finance is acting as financial adviser to Umeco on thistransaction. - Ends - For further information, please contact:- Umeco plc (www.umeco.com) Tel: +44 (0) 1926 331 800Clive Snowdon, Chief ExecutiveDoug Robertson, Group Finance Director Hogarth Partnership Tel: +44 (0) 20 7357 9477John Olsen / Barnaby Fry Further Information on 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 motorsport,automotive and wind energy. Listed on the London Stock Exchange, Umeco had turnover of £333.9 million in theyear to 31 March 2007. Following the Proposed Disposal, Umeco will be managed through two 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 aerospaceand defence markets. With its specialisation in the supply of small componentsand sophisticated IT systems, its growing global customer base can enjoysignificant operational, 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.-------------------------- (1) Following an allocation of Umeco's head office costs. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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