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Senior PLC on Thursday said it has acquired Spencer Aerospace Manufacturing LLC, a Valencia, California-based maker of high-pressure hydraulic fluid fittings for use in commercial and military aerospace applications.
Senior, a Hertfordshire, England-based maker of engineering components, will pay $60 million in cash, half now and half in 12 months, plus up to $40 million more in milestone payments based on Spencer's financial performance. Senior said the acquisition will be funded from its existing borrowing facilities.
The purchase is expected to be completed in the third quarter and is expected to be accretive to adjusted earnings per share in the first full year of ownership, Senior said.
Spencer is expected to book earnings before interest, tax, depreciation and amortisation of at least $1 million in 2022, on revenue of at least $12 million. The US company is seeing strong growth, Senior said, and the final earnout milestone would be payable upon Spencer's annual revenue reaching $40 million.
‘While we already have some fluid fitting expertise within Senior, our customers have been strongly encouraging us to increase our presence in this area and our combined expertise and market reach will allow us to respond decisively and rapidly grow associated revenues,’ said Senior Chief Executive Officer David Squires.
Senior shares were up 1.0% at 129.10 pence early Thursday in London.
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