Umeco, an international provider of advanced composite materials for the aerospace & defence industries, has acquired US-based J. D. Lincoln for $59.5m in cash.
An additional $15.0m is payable based on the Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of Lincoln in the twelve months after the deal is completed.
Lincoln, a privately owned business based at two sites in California, formulates and manufactures a range of pre-preg materials primarily used by aerospace tier 2 suppliers for the manufacture of composite interior structures of commercial aircraft.
The business is complementary to Umeco's existing aerospace composites activities which are focused on the airframe.
In the year ended December 31 2006, Lincoln generated a profit before tax of $0.2m; its gross assets were $6.2 million.
Scott Lincoln, currently Vice President Operations of Lincoln, will become President of Lincoln on completion of the acquisition and is expected to stay with the business for a minimum of four years, reporting to Andrew Moss, Chief Executive of Umeco Composites. The other two shareholders, JD Lincoln and Mike Burkitt, are expected to remain with the business in senior management roles for at least the first year following completion of the acquisition.
The acquisition is subject to regulatory clearance under Hart Scott Rodino and Exon-Florio and is expected to be completed within the next 45 days.
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