Nov 3 2004
Hampson Industries PLC, the UK-listed aerospace and precision engineering group, today announces the completion of its acquisition of Texstars Inc, a leading US-based provider of highly engineered polymer-based technologies primarily for the global aerospace and defence markets, from American Capital Strategies, Ltd and the Texstars management team. The acquisition was for a total cash consideration of USD 41 million (£22.4 million).
Hampson also announced a placing of 69,290,918 new ordinary shares at a price of 17.6 pence per share. The net proceeds of the placing, which are expected to amount to £11.4 million after expenses, will be used to fund approximately half of the consideration paid for Texstars. The balance was funded from a combination of new and existing debt facilities. Save for the new ordinary shares to be subscribed for by the directors, the placing will be fully underwritten by Arbuthnot.
Highlights of the acquisition
- Major extension of Hampson growth platform;
- Marks clear return to growth;
- EPS accretive in first year;
- Complementary customer base and improved geographic balance;
- Attractive positioning on key US aerospace & defence programmes;
- Stable, secure earnings from core military aftermarket business;
- Brings composite forming and transparency technology to Hampson;
- Broadens Hampson's customer and product base and reduces focus on civil & new build markets.
For more information on materials used in aerospace applications, click here.