Business
Increase in Holding in NP Aer
Increase in Holding in NP Aer.
About this update from Morgan Advanced Materials Plc
[{"type":"text","content":"\n RNS Number : 6437J Morgan Crucible Co PLC 01 April 2010 \n \n\nTHE MORGAN CRUCIBLE COMPANY PLC (\"MORGAN CRUCIBLE\") INCREASES ITS HOLDING IN NP AEROSPACE\n \nMorgan Crucible is pleased to announce it will be increasing its equity stake in NP Aerospace from 60% to 70% by acquiring 10% of the ordinary share capital of the company from the management and Employee Benefit Trust for a consideration of £27.2 million. This will be paid in two tranches; £14.8 million on 1st April 2010 and the balance on 6th July 2010. \n \nThe acquisition of this 10% tranche of equity is in accordance with the agreement reached with management and the Employee Benefit Trust at the end of 2008. The £27.2 million represents a combination of:\n(i) full consideration for the 10% of share capital being acquired now, based on the agreed 7.25 x 2009 EBITDA, less debt; and\n(ii) an additional \"true up\" consideration in respect of the 11% acquired at the beginning of January 2009, which was originally based on the forecast results for NPA for 2009 and has been updated to reflect the actual results.\n \nManagement and the Employee Benefit Trust retain a 30% equity stake and a phased process is in place for Morgan Crucible to acquire this remaining equity in three equal annual instalments in early 2011, 2012 and 2013. The consideration payable for the future equity purchases will continue to be based on 7.25 times prior year EBITDA less the debt of the company.\n \nMark Robertshaw, Chief Executive Officer of Morgan Crucible said \"NP Aerospace has continued to deliver an exceptional performance, fully vindicating our decision to accelerate the acquisition of equity and to move to majority ownership at the beginning of 2009. We continue to capitalise on the mutual benefits that NP Aerospace and the rest of the Morgan Group bring to each other in maximising the global opportunities available to us.\"\n \nInformation on NP Aerospace\n \nNP Aerospace is a composite technical moulding and vehicle integration business that develops, manufactures and markets ballistic protective and other composite products in the defence and civil sectors. It is based in Coventry, UK with approximately 300 employees and has a strong position in the UK ...