Aerospace group Umeco is to sell its supply chain business, Pattonair, to a private equity investor for £145.8m.
The group announced it was considering a sale in February.
Pattonair is a provider of distribution and supply chain outsourcing services primarily to OEMs in the aerospace and defence markets. It specialises in the supply of small and medium value components. Its customers include Rolls-Royce plc, BAE Systems, Safran Group, Parker Aerospace, Goodrich, Thales Aerospace, Turbomeca and Eaton.
Pattonair’s revenue for the year ended 31 March 2010 was £234.6 million, operating profit was £14.4 million and adjusted operating profit was £15.0 million. It employs almost 700 people.
For Umeco, the disposal allows it to capitalise on its market positions within the composites sector. It says that Umeco Composites has higher margin characteristics and a broader customer base than Pattonair. The cash from the sale will be used to reduce group debt.
The buyer is a company established by funds advised by Exponent Private Equity.