Safran Aircelle is an existing client of the PFW Farnborough business that Avingtrans acquired in December 2012. The contract, which is valued at circa £25 million of revenue to Avingtrans over its duration of 10 years, includes the existing scope of the commercial agreement between the two companies and is to supply various fabricated assemblies.

Mark Johnson, Managing Director of the Aerospace Division, commented: 

“We are very pleased to announce this LTA with Safran Aircelle which is a result of the ongoing integration of the Farnborough business and which continues the impressive momentum that we have been building in the Aerospace Division. Along with the LTA that we signed with Rolls Royce in December of last year, we are building a good visibility of long term revenue which is an excellent base from which we can continue to grow the business.”

Mark Johnson, Managing Director of the Aerospace Division, commented:

“This is a major milestone in our relationship with Rolls-Royce. We will use Sigma’s developing global capability to deliver the best possible value to Rolls-Royce and we look forward to further strengthening our relationship with them over the life of this LTA.”

Steve McQuillan, Chief Executive of Avingtrans, said: 

“This agreement underpins the Board’s confidence in the Aerospace Division meeting management’s expectations in the current financial year. Following the disposal of Jena Tec for £13.45 million, and the subsequent acquisitions of Aerotech Tubes and aerospace assets from PFW, the Board continues to seek value enhancing acquisitions to build on the Group’s position in the Aerospace and Energy & Medical markets.”

www.sigmacomponents.com

“Aerotech is another excellent addition that will add further capability to our pipes and manifold business. The contracts we have agreed are on major aerospace programmes and provide visibility on revenues whilst also helping to cement our customer relationships.

“This is the second acquisition since the £13.45 million sale of our Jena Tec business and we are delighted that we’ve since been able to add two quality businesses to the Aerospace division for a total of £3.85 million in such a short space of time. We look forward to bedding in these two businesses and remain alert to further opportunities.

Highlights of the Acquisition:

• Strengthens the Group’s Aerospace division
• Cash consideration of £1.85m
• Reinforces Avingtrans’ position with certain existing customers as well as introducing new customers to the Group
• Broadens process and design capabilities to expand aerospace market offering

Information on the assets being acquired
The principal activity of the PFW Farnborough business is the manufacture of a wide range of precision aerospace components, from pipes and ducts to airframe structures. The directors of Avingtrans (the “Board”) believe that the Acquisition enhances the Group’s Aerospace components and sub-assemblies offering and the Board are pleased to have taken further steps in implementing the Group’s strategy, outlined recently after the disposal of the Company’s Industrial Products division. PFW Farnborough has a number of customers in common with Avingtrans, as well as several customers with whom the Company has no existing commercial relationship. The Board therefore believes that the acquisition will both strengthen its current portfolio and also add valuable new sales channels.

PFW Farnborough generated revenues of £7.5 million* and a trading loss of £1.8 million* during the year ended 31 December 2011. However, the Board believes that its current run rate and the potential is materially higher. The net book value of the assets and liabilities being acquired has been valued at £2.3m million as at 30 September 2012*. PFW Farnborough employs 102 people in the UK, all of whom are expected to transfer to Avingtrans following an appropriate consultation process.

Steve McQuillan, Chief Executive of Avingtrans commented:

“The recent sale of Jena Tec provided us with a more focused business and the means to invest in our core activities, including in our thriving Aerospace division. This acquisition will further strengthen our position in the aerospace pipes market, making us a leading player in this niche in the UK. We will develop the PFW Farnborough capabilities to broaden our product offering and thus expand our aerospace supply footprint.

“With the proceeds from the Jena Tec disposal, we will continue to explore opportunities which would improve our customer reach and thereby further strengthen our position in this attractive market.”

* Source: PFW Farnborough unaudited management information, prepared under generally accepted accounting principles in the UK"

www.sigmacomponents.com

Focus now on Aerospace and Energy Divisions

Avingtrans plc, which designs, manufactures and supplies critical components and associated services to the global aerospace, energy, medical and industrial sectors, announces that it has agreed the sale of its Industrial division, comprising the Jena Tec sub-group of companies (“Jena Tec”), to Kuroda, of Japan, for a cash consideration of £13.45 million (the “Sale”).

Highlights:

• Cash consideration of £13.45 million
• Avingtrans now focused on Aerospace and Energy & Medical Divisions
• Aerospace continues to thrive with record order book
• Board continues to evaluate potential acquisition targets
• • Disposal of Jena Tec provides certainty of funding

The Board believes that the Sale will enable Avingtrans to fully focus on its two core sectors through its remaining divisions, namely Aerospace and Energy & Medical, which together contributed revenues of £32.2 million and earnings before interest and tax (“EBIT”) of £1.8 million (before group costs and impairment of goodwill) during the year ended 31 May 2012 and currently employ 548 people. The proceeds of the Sale will be used to invest further in the growth of these divisions and to reduce debt, whilst the Board also continues to evaluate acquisition targets that it believes will enhance long-term shareholder value.

The Industrial division contributed revenue of £11.8 million and EBIT of £1.3 million during the year ended 31 May 2012. At that date, the gross assets of Jena Tec were £12.6 million. The division was constructed by Avingtrans from a series of small acquisitions over several years, which originally cost approximately £4 million in total. Jena Tec employs 178 people across its operations based in Germany, the UK, USA and China, all of whom are expected to transfer to Kuroda. Jena Tec’s principal business is the design, manufacturing and servicing of Precision Ballscrews, Spindles and Linear Motion actuation systems for automation and control of CNC machines and precision instrumentation. The final procedural steps for the disposal will be completed on Thursday, November 8th.

Steve McQuillan, Chief Executive, of Avingtrans commented:

“Whilst Avingtrans is in the enviable position of having three solid, profitable businesses, our overall size and corporate structure has meant that we have been unable to invest in each of the businesses to the degree that we would like and thereby maximise the opportunities available in each of our divisions.

“The sale of Jena Tec provides us with a more focused business and the proceeds will allow us to invest for future growth. Our Aerospace division has been thriving and our order book at the financial year end remained at record levels. The creation of Sigma Composites in February is evidence of our ability to create value by targeted investment and we will continue to explore opportunities which would improve our customer reach or product offering and thereby further strengthen our position in this attractive market.

“The Energy and Medical division had a difficult period last year, but is well placed to recover in the second half of this financial year, as the volume of activity with Siemens increases. We have continued to cement our key relationships within this division and add further customers, which will enable us to prosper in the years ahead.

“We are very proud of all that we have achieved with Jena Tec during our stewardship, including consistently improved sales and profitability. We believe it is well positioned to continue on this growth path under its new owners and we wish our friends there, the employees and Kuroda all the very best for the future. ”

www.jena-tec.co.uk

Business Secretary Vince Cable said:

“The work carried out by the UK Atomic Energy Authority is precisely the sort of high performing research that is vital for us to encourage economic growth.

That’s why I’m pleased that we have managed to attract such capable and experienced members to the Board to drive this work forward. Not only am I sure they will they bring their significant scientific expertise to the panel, but also their financial and commercialisation skills to bring new discoveries to market.”

Pictured: Steve McQuillan

By using advanced analytical modeling, B&D Patterns was able to develop and qualify a range of part numbers in this family of self locking nuts in a very short time scale. Extensive investment in equipment allows the nuts to be manufactured in a dedicated lean cell providing considerable cost savings for our customers.

Commenting, Steve McQuillan, CEO of Avingtrans, said:
"Our investment in the Aerospace division continues to demonstrate benefits to both new and existing customers, as shown by this significant contract win and we believe that our strengthening engineering capability will continue to attract new business."

www.bdpattern.co.uk