Senior PLC SNR Acquisition

  Senior PLC (SNR) - Acquisition

RNS Number : 2726Q
Senior PLC
05 November 2012




Senior plc acquires GAMFG Precision

Senior plc ("Senior") is pleased to announce that it has acquired 100% of the
issued share capital of GAMFG Precision LLC and its parent company GAMCO
Acquisition Company (collectively "GA") from its majority shareholder Mason
Wells, a private equity investor firm based in Milwaukee, Wisconsin, and two
other minority shareholders.

GA, located in Franklin, Wisconsin (approximately 15 miles south of
Milwaukee), is principally a manufacturer of engineered high-precision
machined components and assemblies for the off-road land vehicle and aerospace
markets.

GA specialises in the machining of precision components for fuel systems,
pumps and hydraulic systems primarily for off-road heavy-duty diesel engine
applications, but with a growing presence in the aerospace industry. Its
largest customer is Caterpillar Inc., with Sauer-Danfoss Inc., Parker Hannifin
Corporation and Woodward Inc. also important purchasers of GA product. GA's
components and capabilities are highly complementary to Senior's existing
portfolio: largely in the land vehicle emission control segment today but also
increasingly with its aerospace operations in the future.

The total consideration for the purchase of GA was $45.0m, subject to
adjustments for cash in the business, working capital at completion and 2013
business performance, in the event it is above expectation. The transaction
was funded through the utilisation of existing cash and debt facilities.

For the twelve months to 31 December 2011, GA reported sales of $64.6m and
earnings before interest, tax, depreciation and amortisation ("EBITDA") of
$9.7m. The unaudited management accounts of the business for the nine months
to the end of September 2012 show sales of $45.4m and EBITDA of $6.2m. Gross
assets of the business are approximately $24.8m.

The existing GA management team will continue to manage the business, which
will operate within Senior's Flexonics Division.

The acquisition is expected to be immediately earnings enhancing.

Commenting on the acquisition, Mark Rollins, Senior Group Chief Executive,
said:

"I am very pleased to announce the acquisition of GA and to welcome all of its
employees to the Senior Group. 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.

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."

Further information

Mark Rollins   Group Chief Executive, Senior plc  +44 (0) 1923 714 738
Simon Nicholls Group Finance Director, Senior plc +44 (0) 1923 714 722
Philip Walters Finsbury Group                     +44 (0) 20 7251 3801

About Senior

Senior is an international manufacturing group with operations in 13
countries. It is listed on the main market of the London Stock Exchange
(symbol SNR). Senior designs, manufactures and markets high technology
components and systems for the principal original equipment producers in the
worldwide aerospace, defence, land-vehicle and energy markets. It operates
through two Divisions: Aerospace (64% of H1 2012 revenue) and Flexonics (36%
of H1 2012 revenue). Further information on Senior plc, may be found at:
www.seniorplc.com

Cautionary Statement

This announcement contains certain forward-looking statements. Such
statements are made by the Directors in good faith based on the information
available to them at the time of the announcement and they should be treated
with caution due to the inherent uncertainties underlying any such
forward-looking information.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


ACQUUVBRUKAARAA -0- Nov/05/2012 07:00 GMT