Business
Acquisition of pipe manufacturing business
Acquisition of pipe manufacturing business.
About this update from Avingtrans Plc
[{"type":"text","content":"\n \nRNS Number : 4059N Avingtrans PLC 29 January 2016 \n\n29 January 2016 \nAvingtrans Plc\n(\"Avingtrans\" or the \"Company\" or the \"Group\")\n \nAcquisition of Rolls-Royce pipe manufacturing business\n \nAvingtrans (AIM:AVG) is pleased to announce that Sigma Components, which forms Avingtrans PLC's aerospace division, has agreed to acquire Rolls-Royce's internal pipe manufacturing businesses in Nuneaton, UK and Xi'an, China for £3.5m, which is being funded by the Company's existing debt facilities. Avingtrans designs, manufactures and supplies critical components, modules and associated services to the aerospace, energy and medical sectors \n \nSigma has developed a strong relationship with Rolls-Royce over a number of years, by supplying components for numerous engine programmes. \n \nAs well as strengthening the Group's UK manufacturing footprint, the Chinese facility complements the Group's existing operations in Chengdu and will further enhance Sigma's offering to global aerospace OEM's in this key growth region. The acquisition will also reinforce the Company's position in several key engine programmes - notably the Trent XWB - and provide a strong platform from which to grow sales across our wider product range.\n \nSigma will use the combined capabilities of its UK and Chinese facilities to offer competitive commercial terms to Rolls-Royce, as the XWB programme grows rapidly. This acquisition will grow Avingtrans' Aerospace sales significantly, as Sigma continues to strengthen its position in the core markets of pipes, ducts and fabrications.\n \nRolls-Royce's internal pipe manufacturing business employs 132 people at its Nuneaton facility, with an additional 110 personnel working at its Xi'an site. Operations will continue at both sites following the completion of the deal. \n \nAt completion, around the beginning of March 2016, the acquired assets are expected to be £3.5m and, in the previous financial year, to December 2015, the business traded at an approximately break-even level.\n \nSteve McQuillan, CEO of Avingtrans, said: \"This acquisition is a key part of our strategy to support Sigma's growth with investment in businesses and technologies that complement our existing capabilities. We are delighted to be working with Rolls-Royce on these major programmes.\...