Senior plc (SNR.L) announced it has acquired 100% of the issued share capital of Lymington Precision Engineering Limited, from management and Vine Street Capital, for an initial consideration of 45.8 million pounds on a debt free/cash free basis. Additional earn-out consideration of up to 31.7 million pounds is potentially payable, dependent upon the financial performance of LPE during the 12 month period ending 31 March 2016.
LPE is a leading manufacturer of precision-machined components, fabrications, assemblies and kit sets for the oil and gas, telecommunications, aerospace, defence, land and sea systems, nuclear and marine industries. The company is based in Lymington, Hampshire, UK. LPE will form part of Senior's Flexonics Division.
Senior plc said, due to the current short-term uncertainties in the oil and gas market, its financial performance is expected to be materially lower over the next twelve months than that experienced in the recent past. The Group also said the acquisition is still expected to be immediately earnings enhancing.
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