Business
Sale of global Rotary business to Moog Inc
Sale of global Rotary business to Moog Inc.
About this update from Morgan Advanced Materials Plc
[{"type":"text","content":"\n \nRNS Number : 1323X Morgan Advanced Materials PLC 17 February 2017 \n\n17 February 2017\n \nMorgan Advanced Materials announces sale of its global Rotary Transfer Systems business to Moog Inc.\n \nMorgan Advanced Materials plc (\"Morgan\") announces today that it has agreed to sell its global Rotary Transfer Systems business (\"Rotary\"), principally located on two manufacturing sites at Antweiler, Germany, and Chalon, France, to Moog Holding GmbH & Co. KG, whose ultimate parent company is Moog Inc. (\"Moog\"). The sale values the business at €40m on a cash-free, debt-free basis, with consideration payable in cash at completion, subject to customary closing working capital adjustments. Completion is subject to customary conditions of closing, including merger clearance in Germany.\nIn the year ended 31 December 2016, the Rotary business generated €4.7m of operating profit on €19.5m of sales. Gross assets at 31 December 2016 were €7.1m.\nThe divestment is in line with Morgan's strategy to simplify its portfolio and focus on global technology businesses of scale. The proceeds from the sale will be used for re-investment in the core business.\nRotary designs, manufactures and sells electromechanical systems for the transfer of current, signals and data in rotating devices or structures mainly in construction, industrial and marine equipment. It forms part of the Electrical Carbon Global Business Unit of Morgan.\nMoog is a well-established worldwide designer, manufacturer and integrator of precision motion control products and systems, and this acquisition will complement its existing European presence in this market.\nPete Raby, Chief Executive Officer of Morgan, said:\n\"I am pleased to announce this divestment, which delivers on our strategic priority to simplify our portfolio, and focus on our technology businesses of scale. This strategic focus on our core materials science and applications engineering businesses will enable us to better service global markets and create the most value for our shareholders. Rotary is a stand-alone business, with specialist expertise and excellent client relationships. We believe that under Moog's ownership it will have the opportunity to benefit from greater scale and reach, creating a stronger and more resilient business for the future.\"\n ...