Engineer Senior is reducing its dependence on US aeroplane maker Boeing with the acquisition of Airbus-parts supplier Weston.
Based in Colne, Lancashire, but with production facilities in Thailand, Weston counts Rolls-Royce, Spirit Aerosystems (Europe) and Contour Aerospace as its biggest customers.
Weston has content on each of the Airbus A320 family, A330, A350 and A380 platforms, either on the engines or the aircraft structure itself. More than 70% of Weston's revenue for the first ten months of 2011 was derived either directly or indirectly from Airbus commercial aircraft platforms. Over the past year, Airbus has announced build-rate increases for all of these aircraft types and, consequently, the future prospects for Weston appear highly encouraging, the statement from Senior said.
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Senior has paid £54.0m to acquire Weston on a cash-free basis. The acquisition is expected to be immediately earnings enhancing.
For the year to 31 December 2010, the Weston Group reported sales of £42.5m and profit before interest, tax and depreciation of £4.2m. The unaudited management accounts of the business for the ten months to the end of October 2011 show sales of £45.4m and profit before interest, tax and depreciation of £5.0m. Gross assets of the business are approximately £23.5m.
Weston will be integrated into Senior's Aerospace Structures division. The existing management will stay with the company.
"Weston represents an excellent strategic addition to Senior's Aerospace Structures Division, with Weston's European and Asian locations, and predominantly Airbus exposure, providing an excellent complementary fit with the Structures Division's existing North American, and largely Boeing, footprint," said Senior's chief executive, Mark Rollins.
As an addendum to the statement about the acquisition, Senior said it has traded in line with management expectations since it released its interim management statement on October 25th.
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