Business
Acquisition & Placing
Acquisition & Placing.
About this update from Avingtrans Plc
[{"type":"text","content":"\n \nEmbargoed: 0700hrs, 15 September 2006\n\n Avingtrans plc \n\n (\"Avingtrans\") \n\n Acquisition and Placing \n\nThe Board of Avingtrans plc is pleased to announce the conditional acquisition\nof B&D Patterns Limited (\"B&D\") for consideration of up to £10.5 million, of\nwhich £6.583 million is payable in cash and £417,000 will be satisfied by the\nissue of Avingtrans ordinary shares of 5 pence each (\"Avingtrans Shares\") on\ncompletion and the remainder subject to an earn-out calculated by reference to\nB&D's profit before tax for the years ended 31 May 2007 and 31 May 2008.\n\nB&D is a manufacturer and supplier of critical jet engine components to the\naerospace industry. It specialises in precision engineered gas and fuel\ncarrying rigid pipe asemblies, which are required to be manufactured to the\nhighest quality levels using computer numerically controlled machining as well\nas non-destructive testing and X-Ray procedures.\n\nB&D, which owns freehold properties which have been independently valued at £\n3.1m, made a profit before tax of £1 million on turnover of £10.4 million in\nthe year to 31 December 2005. As at 31 December 2005, it had net assets of £2.5\nmillion.\n\nIn connection with the acquisition, Avingtrans has conditionally placed\n1,426,000 Avingtrans shares with an institutional investor at a price per share\nof 125 pence, raising £1.78 million (the \"Placing Shares\"). Further to this,\n170,000 Avingtrans shares will be subject to a Vendor Placing at the same price\nraising a further £212,500. Application has been made for the Placing Shares to\nbe admitted to AIM and admission is expected on 20 September 2006. The shares\nto be issued will all rank pari passu with the Avingtrans' existing ordinary\nshares. The remainder of the consideration will be funded through debt.\n\nKen Baker, Chairman of Avingtrans, commented: \"I am delighted to announce this\nacquisition. B&D Patterns is a high quality precision engineering company with\na proven track record. Its acquisition will enhance Avingtrans' existing\nactivities servicing the aerospace industry and it will, we believe, be\nearnings enhancing in the current financial year. The acquisition continues\nAvingtrans' strategy of acquiring profitable precision engineering companies to\nsupport the Group's organic growth.\"\n\nF...