June 15, 2007 -- Leamington Spa-based aerospace group Umeco is paying an initial £30.2 million to buy US firm JD Lincoln. Umeco said the move would mean a "significant expansion of its composite materials business". The deal could cost the company up to another £7.6 million based on Lincoln's earnings before interest, tax, depreciation and amortisation (EBITDA) in the twelve months after completion.
Lincoln, a privately owned business based at two sites in California, formulates and manufactures a range of materials primarily used by aerospace tier two suppliers for the manufacture of composite interior structures of commercial aircraft. "It is therefore highly complementary to our existing aerospace composites activities which are focused on the airframe," Umeco said. In the year ended December 31 Lincoln generated a profit before tax of £101,000. Assets totalled £3.1 million. Clive Snowdon, chief executive of Umeco, said: "This acquisition is our largest since that of the Advanced Composites Group in 2004, and represents a major investment."
Source: Birmingham Post
Source: Factiva
