REG - Avingtrans PLC - Acquisition of Slack & Parr and Adaptix update

AvingtransAnnouncement

07/08/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230807:nRSG4268Ia&default-theme=true

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 £4.9m (the "Acquisition") to be satisfied as
follows:

·      Up to £2.6m 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 £0.9m and up to a maximum
of £1.2m contingent on confirmation of the Net Asset Value of the
Subsidiaries post-completion;

·      £2.3m 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 £13.6m and a loss before tax of £1.9m. 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                                          01354 692391

 Les Thomas, Interim Chairman

 Steve McQuillan, Chief Executive Officer

 Stephen King, Chief Financial Officer

 Singer Capital Markets (Nominated Adviser and Broker)   02074 963000

 Shaun Dobson

 Alex Bond

 Oliver Platts

 IFC Advisory (Financial PR)                             020 3934 6630

 Graham Herring

 Tim Metcalfe

 Zach Cohen

 

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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQPFMBTMTMMBMJ