Acquisition

RNS Number : 1582R

Senior PLC

17 August 2010

 



Senior plc acquires WahlcoMetroflex, Inc.

Senior plc ("Senior") is pleased to announce that it has acquired 100% of the issued share capital of WahlcoMetroflex, Inc. ("WMX"), a manufacturer of dampers, expansion joints and exhaust gas systems for the global power generation, refinery and chemical processing industries.  WMX is located in Maine, USA, with its products and markets being highly complementary to those of the Group's existing, and successful, Senior Flexonics Pathway operation.

WMX, which began trading in 1972, was owned by seven individual shareholders prior to the transaction.  Six of the shareholders are currently active in the business and the majority are expected to remain with the business after acquisition.  WMX will continue to operate from its current facility.

The total consideration for the purchase is estimated at US$13.3m (£8.5m⁽¹⁾), which is being paid through a combination of cash at completion, the assumption of net debt on acquisition and a payment dependent upon the level of working capital in the business at acquisition.  The Board intends to fund the transaction through the utilisation of existing debt facilities.

For the year to 31 December 2009, WMX reported sales of US$ 22.7m (£14.6m⁽¹⁾) and profit before interest and tax of US$ 3.1m (£2.0m⁽¹⁾).  Net assets of WMX at 30 June 2010 were US$ 3.9m (£2.5m⁽¹⁾) with the business reporting sales of US$ 9.7m (£6.2m⁽¹⁾) and profit before interest and tax of  US$ 1.1m (£0.7m⁽¹⁾) for the six month period to 30 June 2010.  The acquisition is expected to be immediately earnings enhancing.

Commenting on the acquisition, Mark Rollins, Senior Group Chief Executive, said:

"I am delighted to welcome all of WMX's employees to the Senior Group.  WMX is a long established leader in the design and manufacture of products for the safe handling of hot gases for industrial processes in North America.  These capabilities, combined with the global market leadership of Senior Flexonics Pathway and the financial strength of the Senior Group, can be expected to provide an enhanced range of solutions for customers across the world, so bringing benefits to employees and shareholders alike."

Notes

(1)	The exchange rate used for the above £ sterling equivalents is $1.56 : £1 being the rate prevailing at the close of business on Friday 13 August 2010.

 

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