Aerospace
Shaanxi Ligeance Mineral Resources on its acquisition of Gardner Aerospace
Background
Steen Associates is acting as exclusive financial adviser to Shaanxi Ligeance Mineral Resources (“SLMR”) on its acquisition of Gardner Aerospace, a UK-based manufacturer of metallic detailed parts for commercial aerospace applications.
About the transaction
The transaction involves the acquisition of Gardner Aerospace by SLMR and is subject to various regulatory approvals. Completion is expected during the first part of 2017. The acquisition strengthens SLMR’s strategic position in the aerospace value chain by combining upstream access to critical raw materials with downstream aerospace manufacturing capabilities.
About the client
Gardner Aerospace is a European leader in the manufacture of aerospace components supplied to major OEMs, notably Airbus, as well as other airframe and engine manufacturers. Headquartered in Derby, UK, the company operates manufacturing sites across Europe and India and employs approximately 1,500 people, including 690 in the UK. Gardner generates revenues of around £150 million with operating margins of approximately 20% and is well positioned on key Airbus platforms including the A320, A330 and A350.
SLMR is listed on the Shanghai Stock Exchange with a market capitalisation of approximately £1.4 billion and operates as an aerospace and mining corporation. Its mining division owns rhenium mines in Northern Huashan with proven reserves representing around 7% of global supply. Rhenium is a critical input in the production of superalloys used in aerospace components, and SLMR maintains close relationships with regional and national Chinese authorities.
Date:
June 2017
Service:
Sell side
Size:
£326m
Deal locations:
