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Senior Acquires Damar Machine - Update

Manufacturing group Senior Plc (SNR.L) Monday said it has acquired Damar Machine Co. and two small related legal entities operating from the same facilities for an estimated total consideration of $24.5 million. The acquisition is expected to be immediately earnings enhancing.

Senior designs, manufactures and markets high technology components and systems for original equipment producers in the aerospace, defence, land-vehicle and energy markets.

Damar is a privately-held business based in the U.S. It is a manufacturer and integrator of precision machined parts and assemblies for the commercial aerospace industry. Damar specializes in air beams, wing skins, stow-bin parts, interior decorative assemblies, panels and bulk-head components.

Damar's business has content on Boeing Co.'s (BA) 737, 747, 767, 777 and 787 platforms. Boeing commercial aircraft represented around 88 percent of Damar's revenue in 2010. For the year ended December 31, 2010, Damar reported sales of $25.6 million and profit before interest, tax and depreciation of $3.1 million.

Mark Rollins, Senior's Group Chief Executive, said, "Damar has a long and established reputation in the aerospace industry and its operations are highly complementary to Senior's existing business."

The purchase price is being paid through a combination of an upfront cash payment, assumption of net debt on acquisition and a payment dependent upon the level of working capital in the business at completion. The Board intends to fund the transaction through the utilization of existing cash resources, Senior said.

SNR.L closed Friday's regular trade at 148.10 pence, up 2.60 pence or 1.79 percent, on 1.54 million shares.

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by RTT Staff Writer

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