Friday 20th June 2008
Hampson Industries PLC (Hampson) has announced completion of its acquisition of US based companies, Odyssey International Inc (Odyssey) and Global Tooling Systems Inc (GTS). In an all West Midlands deal, senior debt funding has been provided by Bank of Scotland Corporate and Lloyds TSB in Birmingham.
The consideration for the acquisitions amounted to US$253 million, funded in part by the proceeds of a share placing raising £65 million, with the remainder being underwritten by Bank of Scotland Corporate and Lloyds TSB as part of a new £185 million, 5 year senior multicurrency term and committed revolving credit facility.
One of the region's most well known names, Hampson is a UK-listed international precision engineering group serving the global aerospace and specialist automotive markets. It operates in three divisions which span across 16 manufacturing sites in the UK, USA and India and now has over 2,400 employees.
Hampson's strategy has focused on building world leading positions in attractive niches in the global aerospace market with growth through both organic investment and selective acquisitions. Since December 2004, the company has made six such acquisitions, all based in North America.
Odyssey is based in Michigan in the USA and is one of the world's leading suppliers of integrated tooling systems for the aerospace industry. Its vast experience in manufacturing very large tools for precision carbon composite aircraft structures has enabled it to be a key supplier on the very latest generation aircraft platforms. The existing management team is expected to continue to manage the company within the enlarged Group.
GTS is also based in Michigan and is one of the world's leading suppliers of design, engineering and fully-integrated tooling services to the aerospace industry. In particular, GTS is renowned for its breadth of service and full suite offering. Its management team is also expected to manage the company within the Group.
Commenting on the transactions, Finance Director Howard Kimberley said:-
"These acquisitions mark the continuation of our strategic push into high growth composites. The close working relationships we have enjoyed with both Bank of Scotland and Lloyds TSB has been a critical enabler in our ability to turn strategy into tangible results. Both Bank of Scotland and Lloyds TSB understand the critical need for swiftness of foot and crisp execution, which, at the end of the day, can mean the difference between successful results and costly failure."
The team at Bank of Scotland Corporate was led by Director Murray Stewart. He said:
"Our relationship with Hampson has developed over a number of years and we are delighted to continue to play our part in their focussed growth strategy. The company's ability to acquire complementary, high performing businesses and to successfully integrate them, has been an important factor in their growth and success to date."
Notes to Editors
Bank of Scotland Corporate,part of HBOS plc, has a reputation for excellence in the provision of corporate finance, delivering innovative funding solutions across a range of markets. With experience across many areas of corporate finance, including specialist teams covering Joint Ventures, Integrated Finance, Structured Property Finance, Infrastructure Finance and Housing Finance, Bank of Scotland can draw on an expert pool of professionals with proven track records. Bank of Scotland provides funding to more Management Buy-Outs than any other bank in both the UK and Europe and is now recognised as the top UK arranger for PFI/PPP deals. Bank of Scotland Corporate employs around 9,000 employees. Total lending at December 2007 stood at £109.3 billion.
