Morgan Advanced Materials PLC Sale of global Rotary business to Moog Inc (1323X)
February 17 2017 - 1:00AM
UK Regulatory
TIDMMGAM
RNS Number : 1323X
Morgan Advanced Materials PLC
17 February 2017
17 February 2017
Morgan Advanced Materials announces sale of its global Rotary
Transfer Systems business to Moog Inc.
Morgan Advanced Materials plc ("Morgan") announces today that it
has agreed to sell its global Rotary Transfer Systems business
("Rotary"), principally located on two manufacturing sites at
Antweiler, Germany, and Chalon, France, to Moog Holding GmbH &
Co. KG, whose ultimate parent company is Moog Inc. ("Moog"). The
sale values the business at EUR40m on a cash-free, debt-free basis,
with consideration payable in cash at completion, subject to
customary closing working capital adjustments. Completion is
subject to customary conditions of closing, including merger
clearance in Germany.
In the year ended 31 December 2016, the Rotary business
generated EUR4.7m of operating profit on EUR19.5m of sales. Gross
assets at 31 December 2016 were EUR7.1m.
The divestment is in line with Morgan's strategy to simplify its
portfolio and focus on global technology businesses of scale. The
proceeds from the sale will be used for re-investment in the core
business.
Rotary designs, manufactures and sells electromechanical systems
for the transfer of current, signals and data in rotating devices
or structures mainly in construction, industrial and marine
equipment. It forms part of the Electrical Carbon Global Business
Unit of Morgan.
Moog is a well-established worldwide designer, manufacturer and
integrator of precision motion control products and systems, and
this acquisition will complement its existing European presence in
this market.
Pete Raby, Chief Executive Officer of Morgan, said:
"I am pleased to announce this divestment, which delivers on our
strategic priority to simplify our portfolio, and focus on our
technology businesses of scale. This strategic focus on our core
materials science and applications engineering businesses will
enable us to better service global markets and create the most
value for our shareholders. Rotary is a stand-alone business, with
specialist expertise and excellent client relationships. We believe
that under Moog's ownership it will have the opportunity to benefit
from greater scale and reach, creating a stronger and more
resilient business for the future."
This announcement contains Inside Information in relation to
Morgan Advanced Materials plc.
- Ends -
Notes to Editors:
Morgan
Morgan is a global materials technology company which designs
and manufactures a wide range of high specification products with
extraordinary properties, across multiple sectors and
geographies.
From an extensive range of advanced materials it produces
components, assemblies and systems that deliver significantly
enhanced performance for its customers' products and processes. Its
engineered solutions are produced to very high tolerances and many
are designed for use in extreme environments.
The Company thrives on breakthrough innovation. Its materials
scientists and applications engineers, work in close collaboration
with customers to create outstanding, highly differentiated
products that perform more efficiently, more reliably and for
longer.
Morgan has a global presence with approximately 9,000 employees
across 50 countries serving specialist markets in the energy,
transport, healthcare, electronics, security and defence,
petrochemical and industrial sectors. It is listed on the London
Stock Exchange in the engineering sector (ticker MGAM).
For more information on Morgan visit:
www.morganadvancedmaterials.com
Rotary
The Rotary business designs, manufactures, sells and distributes
a portfolio of electromechanical systems for the transfer of
current, signals and data with a rotating media distributor to
transfer media (like oil, water and gases) between a stationary
device and a rotating one.
The business's international customer base operates across a
diverse range of global end-markets including automotive (e.g.
robotic technicians), marine (e.g. propulsion systems), energy
(e.g. wind turbine systems) and medical equipment (e.g. operating
theatre lighting) with virtually all products custom-built around
customers' specific requirements.
Moog
Moog is a worldwide designer, manufacturer and integrator of
precision control components and systems. Moog's high-performance
systems control military and commercial aircraft, satellites and
space vehicles, launch vehicles, missiles, automated industrial
machinery, wind energy, marine and medical equipment. Additional
information about the company can be found at www.moog.com
Enquiries:
Pete Raby/Peter Morgan Advanced
Turner Materials 01753 837 000
Mike Smith/Alison Brunswick Group
Kay LLP 0207 404 5959
This information is provided by RNS
The company news service from the London Stock Exchange
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