LONDON: Senior plc, an international manufacturer of high technology components and systems, announced the divestiture of Senior Aerospace Connecticut, the stand alone, build-to-print helicopter structures operating business to PCX Aerosystems LLC for $74 million.
Senior Aerospace Connecticut is a build-to-print manufacturer of precision metallic parts for the aerospace industry, supplying machined parts from bar stock, forgings and castings for rotorcraft and turbine engines.
It is the only operating business in the Group whose primary focus is build-to-print parts for the rotary sector and we believe it is better suited to a larger organisation, which is primarily focused on that market. The business has approximately 100 employees based in Enfield, Connecticut, USA.
Net cash proceeds from the transaction are expected to be approximately $66 million after working capital adjustments, taxes and other transaction-related costs.
Consideration is payable in cash at completion and subject to customary completion adjustments.
During the year to 31 December 2019, Senior Aerospace Connecticut generated revenue of $43.1m, with EBITDA of $6.5m and operating profit of $4.9m.
The divestiture is consistent with Senior’s strategy to review the overall portfolio of its businesses and evaluate their strategic fit within the Group.
The net proceeds will be used to further strengthen Senior’s balance sheet and provide greater flexibility for the Group to operate within its capital deployment framework.
David Squires, CEO of Senior plc said: “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. We have a great leadership team in Connecticut with a capable and talented workforce: I would like to thank them for their loyal service to Senior plc and wish them all the best for the future.”
The transaction is expected to close in H1 2021, subject to customary closing conditions.
Lazard & Co., Limited acted as exclusive financial adviser and Buchanan Ingersoll & Rooney PC as legal adviser to Senior on the transaction.
Senior designs, manufactures and markets high technology components and systems for the principal original equipment producers in the worldwide aerospace & defence, land vehicle and power & energy markets. www.seniorplc.com
PCX Aerosystems is a leading provider of flight-critical, life-limited dynamic components and systems for demanding aerospace applications. www.pcxaero.com