04 May 2016
Silverfleet Capital to acquire Sigma Components
Silverfleet backs MBO of precision aerospace components manufacturer
Silverfleet Capital, the European private equity firm, has today announced its agreement to acquire a majority stake in the aerospace division of Avingtrans Plc (“Sigma Components” or “Sigma”), a UK precision engineering components manufacturer for the commercial aerospace sector. Sigma is being bought for an enterprise value of £65.0 million and its existing management, led by its founding CEO, Mark Johnson will acquire a minority interest. Completion of the transaction is subject to Avingtrans Plc shareholder approval and regulatory approvals from the German and Austrian competition authorities.
Sigma operates from four sites in the UK and two sites in China employing approximately 750 people and serves global aerospace customers including Rolls-Royce, Safran, Airbus, Bombardier and BAE Systems. It has a team of over 40 engineers and has a strong track record of bringing new products to market.
Over the last few years Sigma Components has successfully grown, both organically and by acquisition, to become an international leader in its chosen niche markets of aerospace pipes, ducts, fabrications and precision surface finishing. Most recently in March 2016 Sigma bought pipe manufacturing sites in Nuneaton in the UK and Xi’an in China from Rolls-Royce, which are complementary to its existing pipe portfolio.
Debt financing for the transaction is to be provided by HSBC and Santander. Completion is expected to occur no later than the end of May 2016.
Mark Johnson, CEO of Sigma, commented: “We welcome the investment by Silverfleet as we believe they are an ideal partner to support Sigma in its next growth stage. We have identified some exciting opportunities for broadening our manufacturing capabilities and developing our relationships with new and existing customers and look forward to taking the business to the next level.”
The transaction was led by David MacKenzie, Partner at Silverfleet Capital, who has responsibility for the UK manufacturing sector, and was supported by Adam Ahern, Associate. David MacKenzie commented: “We are delighted to be partnering with Sigma, a market leader with excellent growth dynamics. Silverfleet has a strong track record of investing in manufacturing businesses and we see an ideal opportunity to develop Sigma, which operates in a fragmented market place, both domestically and internationally.”
Silverfleet has been an active investor in the manufacturing sector. It recently announced an agreement to sell Kalle, a German headquartered manufacturing business, which saw substantial growth during Silverfleet’s ownership. Last month it also announced an investment in Coventya, a French headquartered specialty chemicals business. Its current portfolio of manufacturing businesses also include Cimbria, one of the leading global manufacturers of seed and grain processing equipment and a camera systems and image processing manufacturer, Phase One.
Silverfleet was advised by KPMG (corporate finance), Macfarlanes (legal), Deloitte (financial and tax due diligence and tax structuring), Victanis and Peter Woolfrey (commercial due diligence), ERM (environmental due diligence) and Aon (insurance due diligence).