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 €40m 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 €4.7m of operating profit on €19.5m of sales. Gross assets at 31 December 2016 were €7.1m.
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.
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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 Turner |
Morgan Advanced Materials |
01753 837 000 |
Mike Smith/Alison Kay |
Brunswick Group LLP |
0207 404 5959 |
