TIDMAVG
RNS Number : 4268I
Avingtrans PLC
07 August 2023
7 August 2023
Avingtrans Plc
("Avingtrans" or the "Group")
Acquisition of Slack & Parr Limited and Adaptix Ltd
update
Avingtrans plc, which designs, manufactures and supplies
critical components, modules, systems and associated services to
the energy, medical and industrial sectors, is pleased to announce
that its subsidiary Hayward Tyler Fluid Handling Limited ("Hayward
Tyler") has completed the acquisition of certain assets of Slack
& Parr Limited ("Slack & Parr") from administration,
together with Slack & Parr's overseas subsidiaries in the USA
and Asia for a total consideration of up to GBP4.9m (the
"Acquisition") to be satisfied as follows:
-- Up to GBP2.6m to acquire certain UK assets and the shares in
Slack & Parr's USA & Asia subsidiaries (the "Subsidiaries")
to be wholly satisfied in cash;
o Consideration for the Subsidiaries is at least GBP0.9m and up
to a maximum of GBP1.2m contingent on confirmation of the Net Asset
Value of the Subsidiaries post-completion;
-- GBP2.3m to acquire certain leased assets subject to and to be
wholly satisfied by lease financing.
About Slack & Parr
Slack & Parr is a family-owned manufacturer of specialist
pumps and a market leading supplier of high-precision gear metering
pumps, hydraulics flow dividers and industrial pumps to customers
around the world. Founded in 1917, it has a strong track record in
supporting global blue-chip OEMs and end users, with a large
installed base, supported by service facilities in the USA and
Asia. Slack & Parr operates from a 64,000 sq ft
state-of-the-art manufacturing facility in Kegworth, Derbyshire and
it also has facilities in Charlotte, North Carolina and Shanghai,
China. The Acquisition has secured the employment of 100 skilled
employees.
Slack & Parr entered into administration on 3 July 2023,
following ongoing losses and funding issues. The last audited
annual accounts to March 2022 reported revenue of GBP13.6m and a
loss before tax of GBP1.9m. Avingtrans will acquire the UK Trade,
IP, Fixed Assets and Stock and the Investments in Slack &
Parr's US and China Subsidiaries. The Acquisition is expected to
further strengthen Slack & Parr's market presence, improving
operational efficiency and reinforcing its position as a leading
force in the gear pump market, embracing innovation and delivering
world-class products and services.
Slack & Parr has been acquired by Hayward Tyler, to
capitalize on the common knowledge of specialist pumps. The
integration phase will be managed by the Group's PSRE team, to
optimize the cost base and to review all contracts and margins,
whilst looking to strengthen its aftermarket activities.
Austen Adams, Divisional Managing Director at Avingtrans, said
:
" We are pleased to have completed this acquisition, which
brings another globally-respected, British heritage brand under the
direction of the Avingtrans team. The sorts of challenges this
business has faced are familiar to us and we are experienced in
resolving them, having successfully turned around other businesses
under similar circumstances. Slack & Parr's global footprint,
combined with its well-invested operational capability, powerful
brand, highly skilled workforce and large installed base provide a
great opportunity to re-establish the business on a firm footing
going forward."
Edward Barrington, Managing Director of Slack & Parr, added
:
"We are delighted to be part of Avingtrans and eagerly
anticipate the opportunities this partnership will unlock for the
business. Together, we are confident we can build on our heritage
of precision engineering and continue to provide our clients with
the quality and reliability they have come to expect from us."
Update to the Acquisition of Adaptix
Further to its announcement on 13 July 2023 concerning the
acquisition of Adaptix Ltd ("Adaptix"), Avingtrans can confirm that
the offer to acquire Adaptix has been accepted by the majority of
Adaptix shareholders and this transaction can now proceed to
completion. Completion is subject to, inter alia, approval under
the UK National Security & Investment Act, which we anticipate
to be no later than the early part of September. A further
announcement will be made in due course.
ENDS
Enquiries:
Avingtrans plc
Les Thomas, Interim Chairman
Steve McQuillan, Chief Executive Officer
Stephen King, Chief Financial Officer 01354 692391
Singer Capital Markets (Nominated Adviser
and Broker)
Shaun Dobson
Alex Bond
Oliver Platts 02074 963000
IFC Advisory (Financial PR)
Graham Herring
Tim Metcalfe
Zach Cohen 020 3934 6630
About Avingtrans plc:
Avingtrans designs, manufactures and supplies original
equipment, systems and associated aftermarket services to the
energy, medical and industrial markets worldwide.
Business units
Hayward Tyler - Luton & East Kilbride, UK and USA, China and India
Specialises in the design, manufacture and servicing of performance-critical
motors and pumps for challenging environments.
Energy Steel, Inc - Rochester Hills, Michigan, USA
Energy Steel, part of the Engineered Pumps and Motors Division of
Avingtrans plc, has been serving the nuclear power industry since
1982 with capabilities in equipment fabrication, material supply,
precision machining, engineering, and repair services. Through strategic
OEM partnerships, it also provides solutions for obsolete nuclear
components and support for the most complex projects.
Stainless Metalcraft Ltd - Chatteris, UK and Chengdu, China
Provider of safety-critical equipment for the energy, medical, science
and research communities, worldwide, specialising in precision pressure
and vacuum vessels and associated fabrications, sub-assemblies and
systems.
Booth Industries - Bolton, UK
Designs, manufactures, installs and services doors and walls which
can be tailored to be: blast &explosion proof; fireproof; acoustically
shielded; high security/safety; or combinations of the above
Ormandy Group, Bradford, UK
Design, manufactures and servicing of off-site plant, heat exchangers
and other HVAC (heating, ventilation and air conditioning) products
Composite Products Ltd - Buckingham, UK
Centre for composite technology, parts and assemblies, serving customers
in industrial markets.
Magnetica Ltd - Brisbane, Australia
Magnetica Limited specialises in the development of next generation
MRI technologies, including dedicated extremity MRI systems and
MRI system components. Magnetica has successfully built and tested
a compact, integrated 3 Tesla orthopaedic MRI system, demonstrating
clinical-quality imaging. Commercialisation of this system (and
others) is on-going. Magnetica's structure now includes two other
business units:
Scientific Magnetics - Abingdon, UK
Designs and manufactures superconducting magnet systems and associated
cryogenics for a variety of markets including MRI and provides services
for Nuclear Magnetic Resonance instruments.
Tecmag Inc, Houston, USA
Designs, manufactures and installs instrumentation, including consoles,
system upgrades, and probes, mainly for Magnetic Resonance Imaging
(MRI) and Nuclear Magnetic Resonance (NMR) systems.
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END
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