Morgan Advanced Materials to offload rotary business to Moog for €40m

17th Feb 2017 07:03

(ShareCast News) - Manufacturer Morgan Advanced Materials is to sell its Europe-based rotary transfer systems business to Moog, a US manufacturer of motion and fluid control systems, for about €40m on a cash and debt free basis.The sale is in line with the FTSE 250 company's strategy to simplify its portfolio and focus on global technology businesses of scale, while the rotary business for Moog will complement its European presence in the motion control manufacturing market.The proceeds from the sale, which is subject to merger clearance in Germany where the rotary business has a manufacturing site, will be invested in the business.Morgan's chief executive Pete Raby said that the focus on its core materials science and applications engineering businesses will enable the company to better service global markets and create the most value for shareholders."Rotary is a stand-alone business, with specialist expertise and excellent client relationships. We believe that under Moog's ownership it will have the opportunity to benefit from greater scale and reach, creating a stronger and more resilient business for the future."In the year ended 31 December 2016, the rotary business generated €4.7m of operating profit on €19.5m of sales and its gross assets were worth €7.1m.