Hampson Industries makes £51m disposal
Four businesses in the Hampson Industries portfolio have been acquired in a deal worth more than £51m. Wolverhampton-based Hampson sold the subsidiaries to European private equity firm Bridgepoint Development Capital.
The four businesses - Lamsco and Bolsan in the US and Attewell and PSG in the UK – will be renamed Shimtech Industries once the acquisition is completed.
They were sold for a total of $84m (£51.5m). Hampson said it expected net cash proceeds from the sale to stand at £46.3m after transaction costs.
Following the disposal, the Wolverhampton manufacturing company said it will focus on high precision tooling systems and advanced composite technologies.
All of the disposed businesses specialise in manufacturing shims, which are components produced to isolate two materials during the assembly of aircraft and structures.
Shims are typically sold to the major aircraft OEMs and their suppliers.
For the year to 31 March 2011, the businesses had revenues of $44m (£26.9m).
In addition to manufacturing shims, Shimtech will also manufacture a range of non-metallic seals and gaskets for high technology industrial applications.
Lloyds Bank in Birmingham supplied senior debt and working capital facilities for the acquisition.
Chris Geoghegan, chairman of Hampson, said that the sale of the subsidiaries would strengthen the company's balance sheet.
He said: "With this stronger financial platform, Hampson will be better positioned to take advantage of the growth opportunities created by the long-term trend of increasing composites usage in the aerospace industry.
"The board is confident that the strategic path taken by the group to focus on advanced composite technologies and to create a global leader in the market for large, high precision tooling systems, in combination with the on-going operational improvement initiatives across the group, is laying the foundations for improved results over the medium to longer term."
Bridgepoint was advised by CSP, Steen Associates, PwC, Deloitte, Wragge & Co, Drinker Biddle, Marsh and ERM. Pinsents provided legal advice.
Hampson Industries was assisted by corporate finance company Lazard and law firm Eversheds.
