Pattonair sold for £146m
Leamington Spa-based Umeco has sold its Pattonair division for £145.8m. The engineer said the deal was struck as it wanted to concentrate on the composites side of the business.
Umeco's hardware and components distribution arm was sold to a company established by funds advised by Exponent Private Equity, said the company.
Following the disposal, former chief executive Clive Snowdon and Douglas Robertson, formerly finance director, resigned from the board of Umeco with immediate effect. They have been replaced by Andrew Moss and Steven Bowers respectively.
Net cash proceeds from the sale are expected to reach about £109.3m before transaction costs are accounted for.
Of the net proceeds, £8m will be deferred and paid in four equal quarterly instalments between 29 June 2012 and 29 March 2013.
Completion of the disposal is expected to take place during July 2011.
Neil Johnson, chairman of Umeco, said: "This is a turning point in Umeco's long history as a specialist engineering group. The board has concluded that it is in the best interests of the Company and its shareholders to focus the Umeco Group's resources on its composites business, which it considers has attractive long-term growth prospects in its core markets of aerospace and defence, wind energy, automotive and marine."
