UK aircraft parts maker senior buys Malaysia's UPECA for US$126mil to expand in Asia

LONDON: Senior Plc, a British maker of parts for the aircraft and the vehicle industries, said it would buy Malaysia's UPECA Technologies to expand in the growing Asian market.

Senior's shares rose as much as 6.3 percent in early trade on the London Stock Exchange on Monday.

Senior, which makes hydraulic components and wall panels for Boeing Co and Airbus Group, said the deal value was 75.5 million pounds ($126.2 million), including assumption of net debt of 17.3 million pounds.

Privately owned UPECA supplies parts for Senior's civilian aircraft programmes, which include work on the Airbus A320 and A350 and the Boeing 787 Dreamliner.

UPECA, which also has a plant in China, gets about one-third of its revenue from the aerospace market with most of the rest coming from the oil and gas industry.

Senior said prospects for growth were bright for both of UPECA's two businesses.

"Asia is a very attractive region and an important one for us," Chief Executive Mark Collins told Reuters in an email.

"There are high levels of customer interest in Asia-Pacific ... We're accelerating our presence in the region with this acquisition and the three-fold expansion of our Thai facility," Rollins said.

Senior in July last year said it would expand an aircraft parts factory in Thailand to cut manufacturing costs and strengthen ties in high-growth Asian markets.

Rollins told Reuters earlier this month that Senior could spend about 150 million pounds on acquisitions.

Senior said it expected the UPECA deal to close by the end of March and immediately add to earnings.

UPECA said it expected sales to rise about 11 percent to the equivalent of 31.3 million pounds in the year ending March 31.

Trading profit before interest, tax and depreciation is expected to rise to the equivalent of 7.4 million pounds from 6.3 million a year earlier.

Senior's shares were up 1.6 percent at 294.3 pence at 1123 GMT.- Reuters