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Moog to acquire Morgan division
Posted on Friday, 17 February 2017 14:00
Moog Holding, a subsidiary of Moog, has agreed to pick up the rotary transfer systems business (Rotary) of UK-based Morgan Advanced Materials for EUR 40.00 million on a cash- and debt-free basis.
The division comprises two manufacturing plants, one in Antweiler, Germany, and the other in Chalons, France.
Chief executive of Morgan, Pete Raby, 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.”
The divestment is in line with Morgan's strategy to simplify its portfolio and focus on global technology businesses of scale, with the proceeds from the sale being used for re-investment in the group.
Rotary, which forms part of the electrical carbon global unit of the seller, manufactures and sells electromechanical systems for the transfer of current, signals and data in rotating devices or structures in construction, industrial and marine equipment.
The division posted operating profit and net sales of EUR 4.70 million and EUR 19.50 million, respectively, in the 12 months ended 31st December 2016.
Completion is subject to a number of customary closing conditions, including approval from Germany's Bundeskartellamt.
Windsor-headquartered Morgan claims to be a world-leader in advanced materials science and engineering of ceramics, carbon and composites.
The business generated revenue of GBP 475.40 million in the six months ended 30th June 2016, a slight increase on GBP 469.20 million in the same period of 2015.
Net profit before tax totalled GBP 46.20 million for the first half of 2016 (H1 2015: GBP 49.20 million).
US-based Moog is a worldwide designer and manufacturer of precision control components and systems.
The company is listed on the New York Stock Exchange and its products control military and commercial aircraft, satellites and space vehicles, missiles, automated industrial machinery, wind energy, marine and medical equipment.
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