Date: 20th June 2006
Avingtrans plc invests in majority stake to support Sigma's growth.
Avingtrans, a leading designer, manufacturer and supplier of critical components and services to worldwide industries, today announced the acquisition of a 75% interest in Sigma Precision Components Ltd through the purchase of 300,000 new Sigma shares at a price of £1 per share. Sigma provides a range of services to aerospace and high technology markets and, with the injection of new funds into the business, is poised to accelerate the scale of its operations in China. Avingtrans will lend its expertise in the precision engineering sector as well as supporting Sigma through ongoing investment in capital equipment.
Sigma was founded in 2004 by two widely experienced aerospace professionals who saw an opportunity to create a business from the globalization into emerging markets of the $7 billion aerospace precision components market. Throughout their first year of operation Sigma provided consultancy services from its offices in the UK and China and now, with the benefit of customer commitment and investment support from Avingtrans, will establish a 40,000 sq. ft. precision component manufacturing facility in Chengdu, China.
Sigma's launch customer for the manufacturing facility is UMECO plc who have already publicly stated their confidence in Sigma’s ability to meet their high requirements in terms of quality and delivery.
Ken Baker, Chairman of Avingtrans, commented, “We are delighted to have acquired a majority interest at a time when Sigma is being transformed from a consultancy based group, employing four people, to a larger scale, Far East, manufacturing business that should become an important financial contributor to the Avingtrans group.”
Mark Johnson, Sigma's Managing Director expressed the delight of existing shareholders and management in securing Avingtrans as a partner for growth. "The deal with Avingtrans not only secures the investment for Sigma to further progress our plans, but also provides a superb framework on which to build future value."
Notes:
Avingtrans plc is a UK-listed company providing design, manufacture and supply of critical components and associated services, to manufacturing markets throughout the UK, Germany and North America. Listed on AIM, Avingtrans had a turnover of £24m to 31st May 2005. See www.avingtrans.plc.uk
UMECO plc is a leading international provider of value-added distribution services and composite materials primarily to the aerospace & defence, automotive, motorsport, and wind turbine industries. Listed on the London Stock Exchange, UMECO had turnover of £242.4 million in the year to 31 March 2005. See www.sigmacomponents.com/www.umeco.com
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