LONDON (dpa-AFX) - Senior plc (SNR.L), an engineering solutions provider, on Friday announced that it has signed a binding agreement to sell its Aerostructures business to Sullivan Street Partners Ltd., a UK-based private equity firm, for a total enterprise value of up to 200 million pounds.
The deal is expected to close by year-end 2025 and is expected to be immediately accretive to adjusted operating profit margin and return on capital employed.
The deal includes an initial payment of 150 million pounds, with up to 50 million pounds in additional consideration payable in the first half of 2026, contingent on Aerostructures' 2025 EBITDA performance.
Further, net cash proceeds of approximately 100 million pounds are expected upfront, before 12 million pounds in transaction costs.
The unit is valued at 13.1x expected 2024 EBITDA.
Proceeds will be used to reduce net debt and launch a 40 million pounds share repurchase program.
Following the sale, Senior will operate as a focused fluid conveyance and thermal management or FCTM business.
Senior expected improved profitability and stronger margins, supported by its differentiated products, proprietary technologies, and expertise.
The company also anticipated structurally lower capital needs, enhanced cash flow, and improved shareholder returns, driven by exposure to resilient end markets and continued operational performance.
On Thursday, Senior closed trading, 1.62% higher at 187.80 pence on the London Stock Exchange.
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