June 28, 2007 -- Hampson Industries said it has completed the sale of its precision industrial division to Lattimer Holdings for £3.96 million. The international aerospace and precision engineering group's precision industrial division takes in two units, one each in the UK and US, trading under the Lattimer name. Lattimer will employ 50 people at its site in Southport, Merseyside, and 30 at its location in New Jersey following the management buy-in backed by Merseyside Special Investment Fund.
The precision industrial division generated total revenue of £8.2 million and earnings before interest, tax, depreciation and amortisation of £600,000 for the year ended March 31, 2007. Chief executive Kim Ward said: "This transaction marks a further achievement in our strategy to reposition the group to generate higher performance levels. It evidences our commitment to focus on our core business and to divest operations that we consider do not meet our requirements for long term growth potential".
The proceeds of the disposal will be used to repay existing indebtedness, Hampson, which employs 350 in the Midlands, said. Finance director Howard Kimberley added: "In the last 24 months we have completed four acquisitions in the US, all in the aerospace sector. We want to move to more composites and less cyclical business in the future, and are looking to become more of a pure aerospace business. These businesses were a legacy of the old Hampson and did not fit in with the current strategy of the group."
Meanwhile, also in the aerospace sector, Rolls-Royce Group has won an order to supply 40 Trent engines to Singapore Airlines with a list value of EUR800 million (£400 million). The engines will be used in its new fleet of 20 Airbus A350 XWB twinjets and deliveries will take place between 2013 and 2015, the company said. Additionally, the engines will be maintained by Rolls-Royce through a 12-year totalCare services agreement, it added.
Sir John Rose, chief executive of Rolls-Royce, said: "The strong relationship between Singapore Airlines and Rolls-Royce continues to grow with this latest demonstration of confidence in the Trent engine series. Singapore Airlines has a deserved reputation for world-class customer service, and we are committed to providing the highest quality of equipment and services to help them sustain that position."
Singapore Airlines currently operates 58 Boeing 777s powered by Trent 800 engines, and five Airbus A340-500s with the Trent 500. As launch customer for the Trent 900-powered A380, it will take delivery of its first aircraft later this year. A fourth Trent variant, the Trent 700, has been selected by the airline for 19 A330 twinjets.
Source: Birmingham Post
Source: Factiva
