Silverfleet acquires Sigma in £65m MBO

Kenny Wastell
04 May 2016

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Silverfleet Capital has acquired UK aerospace company Sigma Components from parent group Avingtrans via a management buyout, giving the business an enterprise value of ТЃ65m.

The transaction is subject to shareholder and regulatory approval, which is anticipated by the end of May.

Under its previous owners, the company expanded via a buy-and-build growth strategy. Earlier this year it acquired two pipe manufacturing sites from Rolls Royce, one of which is located in Nuneaton, England, and the other in Xi'an, China.

Silverfleet has a track record of investing in the industrials sector. Earlier this year it acquired a majority stake in French chemicals producer Coventya from Equistone Partners Europe.

HSBC and Santander are providing a debt package to support the Sigma deal.

Company
Founded in 2004 and headquartered in Hinckley, Leicestershire, Sigma designs and manufactures components for the aerospace industry. Its products and services include aerospace pipes, ducts, fabrications and surface finishing.

Sigma's clients include Rolls Royce, Airbus, Bombardier and BAE Systems. It employs 750 people, including a team of around 40 engineers, across six sites in the UK and China.

People
Silverfleet Capital – David MacKenzie (partner); Sumit Dheir (investment executive); Adam Aher (associate).
Sigma – Mark Johnson (CEO).

Advisers
Equity – KPMG (corporate finance); Macfarlanes (legal); Deloitte (financial due diligence, tax); Victanis (commercial due diligence); PWO Advisory, Peter Woolfrey (commercial due diligence), Environmental Resource Management (environmental due diligence); Aon (insurance due diligence).