Aerospace engineer Senior mulls selling aerostructures division
Senior, an engineering supplier to the likes of Boeing and Daimler, has admitted it is thinking about selling off its aerostructures division, in a deal that could be worth up to £450m.
Shares in the FTSE 250 company rose 5.5 per cent today after it confirmed reports that emerged over the weekend that a sale was under consideration, as one of several options amid a review of the business.
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Senior posted a 16 per cent drop in first-half profit in August, as margins in the aerospace business were hit by Boeing’s decision to temporarily halt production of its best-selling 737 Max planes after two fatal crashes that involved the aircraft.
Directors have not made a final decision, and the division may yet remain part of the business. However, it has appointed adviser Lazard on the potential sale, according to Bloomberg.
The aerostructures business makes aeroplane parts as part of the company’s wider aerospace division, which makes up nearly three quarters of revenue.
Last month, Senior said it was gearing up to restructure the business, in a process which wil include closing plants and cutting jobs.
“It is Senior’s policy to review its portfolio on an ongoing basis and evaluate all its operating businesses in terms of their strategic fit within the Group,” it said.
“Senior can confirm that it has been reviewing all strategic options for its aerostructures business, which includes an early stage assessment of a potential divestment of the division.
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“There can be no certainty that this will lead to a transaction.”
It comes as US private equity fund Advent takes over UK defense supplier Cobham in a £4bn deal.