Gardner Aerospace acquired by SLMR for £326m
It was announced today that Gardner Aerospace is to be acquired by Shaanxi Ligeance Mineral Resources (SLMR) and its subsidiary Chengdu Aerospace Superalloy Technology (CAST), for £326m in cash. SLMR, which is listed on the Shenzhen stock exchange with a market capitalisation of £1.4bn, is being advised by Steen Associates, Herbert Smith Freehills and KPMG in connection with the acquisition.
Commenting on the transaction, Lizhi Wang, Vice President of SLMR and CEO of CAST said: “The acquisition of Gardner will allow us to serve our customers better - in China and the rest of the world - for decades to come. With the management team at Gardner together with our advisers - we intend to further consolidate the global aerospace supply chain through careful strategic acquisitions.”
Gardner is a European leader in the manufacture of aerospace parts supplied to aerospace OEMs - notably Airbus and other airframe and engine manufacturers. The business is headquartered in Derby, UK (right) and has additional manufacturing locations across Europe and in India, employing 1,500 people.
Gardner employs 690 staff in the UK.
The company has revenues of approximately £150m and operating margins of around 20%, and is well positioned on existing Airbus platforms including the A320, A330, and A350.
SLMR is an aerospace and mining corporation. SLMR mining division owns a number of rhenium mines in Northern Huashan, with proven reserves equal to 7% of the global market. Rhenium is a rare mineral used in the production of superalloys that are vital in the manufacture of aerospace components. Both SLMR and CAST have close relationships with the regional and national Chinese authorities.
Jim Heaviside from CAST, who will sit on the Gardner Board and lead the development of the group, commented: “As an ambitious trade buyer, we think this is a very exciting development for Gardner as it moves from financial ownership towards a strategic owner with clear plans for further growth domestically and globally. SLMR and CAST have been looking for a solid acquisition like this for some time and we are absolutely convinced that Gardner has the long-term attributes we are looking for – strong management, technical proficiency, embedded customer relationships and high potential for growth.”
The proposed transaction remains subject to certain regulatory and other approvals (including from the shareholders of Gardner Aerospace, following consultation with Gardner's works council in France).