Senior buys US engineering firm

Aerospace technology manufacturer Senior has bought Milwaukee based GAMFG Precision and its parent company GAMCO Acquisition for 45m dollars.

GA makes engineered high-precision machined components and assemblies for the off-road land vehicle and aerospace markets. Its largest customer is Caterpillar.

Commenting on the acquisition, Chief Executive Mark Rollins said: "GA represents an excellent strategic addition to Senior's Flexonics Division. It is located in the mid-west of the USA, close to both its major customers and the group's existing Bartlett facility, which provides an excellent opportunity to optimise the combined commercial and operational performance of both businesses."

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

"GA has a well established reputation in the off-road heavy-duty diesel engine market and has a growing presence in the commercial aerospace industry. Its high-precision machining capabilities, which are new to Senior, combined with Senior's wider market access and financial strength, are expected to enhance the growth prospects of both the Group's Flexonics and Aerospace Divisions."

The $45m acquisition was funded from existing cash and debt facilities, Senior explained.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.