Avingtrans PLC Acquisition of Superconducting Magnet Business (9880X)
28 February 2017 - 6:00PM
UK Regulatory
TIDMAVG
RNS Number : 9880X
Avingtrans PLC
28 February 2017
28 February 2017
Avingtrans Plc
("Avingtrans", the "Company" or the "Group")
Avingtrans Acquires Superconducting Magnet Business
Avingtrans PLC is pleased to announce the acquisition of a
majority stake in superconducting magnet and cryogenic systems
company Space Cryomagnetics Limited, trading as 'Scientific
Magnetics' (the "Acquisition") for total consideration of
GBP347k.
Scientific Magnetics, based in Abingdon, Oxford with 15 members
of staff, was formed in 2000 as a spin-out from Oxford Instruments,
before becoming fully independent in 2005. It designs,
manufactures, tests and installs superconducting magnet systems for
a range of applications, as well as providing consultancy services
to blue chip companies, such as Siemens and Rolls-Royce.
The Acquisition will bring Scientific Magnetics' expertise in
superconducting magnets and cryogenics together with the Company's
own engineering and volume production division, which also has a
long track record of innovation in the medical and space sectors.
In addition, Scientific Magnetics will broaden the Group's
capability in the supply of vacuum vessels and cryostats for Big
Science, space and astronomy projects. Scientific Magnetics has
recently developed a number of exciting technologies, including a
helium-free magnet system for pre-clinical MRI and ultra-high
vacuum (UHV) applications, and the Directors believe that the
Acquisition will enable Scientific Magnetics to bridge the gap
between prototype development and commercial production; a proven
area of expertise for Avingtrans.
Steve McQuillan, CEO of Avingtans, commented:
"We are delighted to have completed this deal, which will
deliver a real step change in our offer to several key markets.
"The Acquisition aligns with our 'buy and build' strategy, which
also saw us purchase the assets of oil & gas manufacturer
Whiteley Read in December 2016. We are looking forward to working
with the Scientific Magnetics team to deliver on what are genuinely
exciting opportunities across a number of key markets."
Consideration for the Acquisition is GBP347k (the
"Consideration"), payable by way of GBP285k in cash and GBP62k to
be satisfied by the issue of 27,233 new ordinary shares in the
capital of Avingtrans (the "Consideration Shares"), in exchange for
94 per cent. of the issued share capital of Scientific Magnets. The
Consideration Shares are to be issued at a price of 226.5p per
share, being the average mid-market closing price of the Company
over the five trading days prior to signing the share purchase
agreement in respect of the Acquisition. As part of the Acquisition
the Company has also agreed to repay an outstanding loan and
accrued interest owed by Scientific Magnets, amounting to
approximately GBP468k.
For the year ended 30 June 2016, Scientific Magnetics reported
turnover of GBP2.0m and profit before taxation of GBP41k.
Application will be made for the Consideration Shares to be
admitted to trading on AIM, with such admission expected to take
place on 6 March 2016 ("Admission"). Following Admission, the
Company's total issued share capital will be 19,171,123 Ordinary
Shares. Avingtrans does not hold any Ordinary Shares in treasury
and therefore following Admission, the total number of voting
rights in Avingtrans will be 19,171,123.
The above figure 19,171,123 may be used by shareholders as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in, Avingtrans under the FSA's Disclosure Guidance and
Transparency Rules.
Enquiries:
Avingtrans plc
Steve McQuillan, CEO
Stephen King, CFO 0135 469 2391
N+1 Singer
Shaun Dobson
Lauren Kettle 020 7496 3000
Newgate
(Financial PR)
Adam Lloyd
Ed Treadwell
James Browne 020 7653 9850
About Avingtrans
Avingtrans plc is engaged in the provision of highly engineered
components, systems and services to the energy, medical and traffic
management industries worldwide.
Energy and medical, engaged in the design and manufacture of
safety critical equipment for the energy, medical, science and
research communities, including oil and gas extraction and
processing equipment, nuclear process plant, machined and
fabricated pressure and vacuum vessels and components. Also, design
and manufacture of fabricated poles and cabinets for roadside
safety cameras and rail track signalling.
The strategy of the group, is to "buy and build" in regulated
engineering niche markets, where we can see potential consolidation
opportunities, which can lead to significantly increased
shareholder value over the medium to long term.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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