Avingtrans Acquires Superconducting Magnet Business
Avingtrans PLC is pleased to announce the acquisition of a majority stake in superconducting magnet and cryogenic systems company Space Cryomagnetics Limited, trading as 'Scientific Magnetics' (the "Acquisition") for total consideration of £347k.
Scientific Magnetics, based in Abingdon, Oxford with 15 members of staff, was formed in 2000 as a spin-out from Oxford Instruments, before becoming fully independent in 2005. It designs, manufactures, tests and installs superconducting magnet systems for a range of applications, as well as providing consultancy services to blue chip companies, such as Siemens and Rolls-Royce.
The Acquisition will bring Scientific Magnetics' expertise in superconducting magnets and cryogenics together with the Company's own engineering and volume production division, which also has a long track record of innovation in the medical and space sectors. In addition, Scientific Magnetics will broaden the Group's capability in the supply of vacuum vessels and cryostats for Big Science, space and astronomy projects. Scientific Magnetics has recently developed a number of exciting technologies, including a helium-free magnet system for pre-clinical MRI and ultra-high vacuum (UHV) applications, and the Directors believe that the Acquisition will enable Scientific Magnetics to bridge the gap between prototype development and commercial production; a proven area of expertise for Avingtrans.
Steve McQuillan, CEO of Avingtans, commented:
"We are delighted to have completed this deal, which will deliver a real step change in our offer to several key markets.
"The Acquisition aligns with our 'buy and build' strategy, which also saw us purchase the assets of oil & gas manufacturer Whiteley Read in December 2016. We are looking forward to working with the Scientific Magnetics team to deliver on what are genuinely exciting opportunities across a number of key markets."
Consideration for the Acquisition is £347k (the "Consideration"), payable by way of £285k in cash and £62k to be satisfied by the issue of 27,233 new ordinary shares in the capital of Avingtrans (the "Consideration Shares"), in exchange for 94 per cent. of the issued share capital of Scientific Magnets. The Consideration Shares are to be issued at a price of 226.5p per share, being the average mid-market closing price of the Company over the five trading days prior to signing the share purchase agreement in respect of the Acquisition. As part of the Acquisition the Company has also agreed to repay an outstanding loan and accrued interest owed by Scientific Magnets, amounting to approximately £468k.
For the year ended 30 June 2016, Scientific Magnetics reported turnover of £2.0m and profit before taxation of £41k.
Application will be made for the Consideration Shares to be admitted to trading on AIM, with such admission expected to take place on 6 March 2016 ("Admission"). Following Admission, the Company's total issued share capital will be 19,171,123 Ordinary Shares. Avingtrans does not hold any Ordinary Shares in treasury and therefore following Admission, the total number of voting rights in Avingtrans will be 19,171,123.
The above figure 19,171,123 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Avingtrans under the FSA's Disclosure Guidance and Transparency Rules.