BBA Aviation sells APPH for $128m
Aviation services company BBA Aviation has said this morning that it's completed the sale of its share capital of APPH entities to aerospace firm Heroux-Devtek for $128m (£77.9m).
APPH, which specialises in landing gear and hydraulic sub-systems, has an estimated revenue of $76.8m and $7.2m of underlying operating profit for the year ending 31 December 2013.
After disposal-related costs and cash which will transfer with the APPH entities, the net cash proceeds of the transaction will be approximately $120.6 million, says BBA.
The company’s board will consider an appropriate return of cash to shareholders, making a further announcement along with its final results on 5 March.
Commenting on the disposal, chief executive Simon Pryce said:
APPH is the only part of BBA Aviation that is focused on product design and development, with significant manufacturing activities and a higher fixed cost base than the rest of the Group.
APPH has made significant operational and financial improvements over the last two years. It has a leading position in its market and a range of growth opportunities, the pursuit of which is better undertaken under ownership more aligned to its products and markets.