Precision Engineering Sector Report...

Precision Engineering Sector Report 2012A Clearwater Industrials Team Report

EVERY BUSINESS DAY, SOMEWHERE IN THE WORLD, AN IMAP ADVISOR IS CLOSING AN M&A TRANSACTION

www.imap.com.

Clearwater Corporate Finance operates globally across 32 countries worldwide through

the leading global M&A organisation, IMAP (www.imap.com). IMAP is now ranked No. 4 worldwide by Thomson Reuters

for deals up to $200m.

80% of Clearwater’s trade sales last year were cross-border transactions

The precision engineering sector lies at the heart of the UK’s manufacturing capability. We boast leadership in innovation, process engineering and supply chain solutions which remain the envy of the world. Indeed, precision engineering companies in the UK are competing on the global stage in markets such as aerospace, defence, motorsport, nuclear, off-highway equipment, oil and gas and renewable energy.

As a home to a wealth of advanced technology expertise, it is unsurprising that precision engineered products constitute a significant proportion of UK exports. This emphasises how precision engineers in the UK are operating in a global marketplace and increasingly needing to differentiate themselves by tying themselves closely to the supply chains of their customers. They are able to stand out not only on the basis of design capabilities, engineering skills and product quality but also on their ability to offer a solutions-based approach to component engineering and supply.

This report covers some of the key drivers and prospects for the precision engineering sector. We also look at some of the growth areas in the market including developments in aerospace engineering, energy control equipment, offshore engineering and uninterruptible power supplies. We also consider how the use of alternative materials is impacting on the industry and particularly how composite materials are contributing to the search for ever more lightweight and fuel-efficient products.

From the perspective of mergers and acquisitions (M&A), the manufacturing industry is experiencing a rich vein of activity. The likes of Charter and Hamworthy attracted buyers in 2011 and the market dynamics suggest that a further round of acquisitions in industrial markets will be seen in 2012. We expect M&A activity in the UK precision engineering market to be particularly active in the sectors where the UK has developed significant competitive advantage including aerospace, flow products, offshore, power and precision electronics. Whilst the most likely purchasers for these assets will be cash-rich US industrial groups, increasingly we are seeing purchasers from emerging markets coming to the fore, particularly from countries such as Brazil, China, India, Indonesia, Mexico and South Korea.

Precision engineering businesses in the UK are also suitable targets for private equity firms that are able to actively contribute to the growth strategy of the business. In some cases this will involve providing access to overseas markets, particularly in Asia, Latin America and Middle East. In other cases the investments will represent suitable platforms for buy-and-build programmes which may require ongoing rounds of investment in order to build a company with scale which will be attractive to strategic buyers on exit.

In 2011, Clearwater Corporate Finance’s Industrials Team advised on 8 transactions involving engineering and manufacturing companies. These transactions exemplified many of the issues covered in this report. We completed deals involving strategic trade buyers from Germany, India and the USA. Our cross border activity was also in evidence as we issued our first information memorandum in Mandarin and acted on the disposal of a Madrid-headquartered company for a UK private equity firm.

I hope this report is thought provoking and we would welcome your comments.

Contents

Overview .............................................................4

By Sector:

- Aerospace and Defence ...............................5

- Automotive ......................................................6

- Motorsport ......................................................6

- Oil and Gas .......................................................7

- Transportation ................................................8

- Electronics ..................................................... 10

Recent M&A deals .......................................... 11

Global Precision Engineering Groups ...... 14

Constantine BillerPartner, IndustrialsClearwater Corporate Finance LLP

P R E C I S I O N E N G I N E E R I N G S E C T O R R E P O R T 2 0 1 2

Precision Engineering: OverviewPrecision engineering forms the backbone of manufacturing activity. It forms an integral part of electrical, electronic, mechanical and optical engineering. From semiconductor chips, to the most advanced medical devices and the most sophisticated drill bits used in oil exploration, precision engineered products play a vital role in the development of the overall economy.

Precision engineered products may be manufactured from either ferrous or non-ferrous metals or from a wide range of composite materials and plastics. The precision engineering industry is also instrumental in providing specialist engineering services for the maintenance and overhaul of plant and machinery used in a multitude of production processes.

Typical end-market applications for precision engineered products can be found in the aerospace, automotive, capital equipment, defence, electronics, materials handling, medical equipment, oil and gas, power generation, renewable energy and transportation industries.

The precision engineering sector in both Europe and North America has historically had a monopoly on the design and development of mission critical components due to the availability of advanced skill sets and the proximity to the end-user. However more recently the precision engineering markets in countries such as China, India and Singapore have grown rapidly as the outsourcing model for component production has emerged.

Significantly, European and North American providers of precision engineering services continue to retain domain expertise in the design and manufacture of mission-critical components. With precision engineered products playing a vital role in numerous mission-critical industrial applications, their role is now expanding to include the management of the supply chain for components and equipment where failure may result in disruption to critical production processes in a multitude of end markets.

A significant factor in the pricing of precision engineered products is the volatility in prices of key and scarcely available metals. Aluminium, copper, molybdenum, nickel, tantalum and titanium are all key raw materials which have been the subject of pricing movements as result of the voracious demand from China for these materials over recent years.

Fundamentally, the global precision engineering industry is segregated geographically into Europe, the Americas and the Asia-Pacific region. The precision engineering industry in Europe flourished as part of the industrial revolution in the 18th century and developed its roots in the supply of precision instrumentation and production machinery.

From these origins, the precision engineering industry in the UK has developed a position supplying the global supply chain to many end markets including the aerospace, automotive, defence, electronics, marine, motorsport, oil and gas and renewable energy sectors. Unsurprisingly, precision engineered products constitute a significant proportion of UK exports.

Whilst competition from the Asia-Pacific region and access to credit to fund growth remain key issues, the UK precision engineering sector is demonstrating growth thanks to investment in engineering expertise, the proximity to user industries and a strong emphasis on R&D.

Competition in the global precision engineering industry is intensifying due to the emergence of both large and small players, primarily from the Asia-Pacific region. Recent mergers and acquisitions (M&A) indicate how the established players are reacting to these developments. Many are seeking to grow their own global footprint through acquisitions involving targets with significant local presence and domain expertise.

Engineering expertise, the management of raw material costs and global reach are therefore attractive features seen in acquisition targets in the precision engineering sector. Other significant factors which draw the attention of large acquisitive groups are the target’s long-term relationships with their customers and embedded role in the supply chain.

UK Precision Engineering

Industry

Investment in R&D

Key position in end-user

supply chains

Ability to serve global markets and customers

Significant domain

expertise

Leadership in UK Precision Engineering

Source: Clearwater

Precision Engineering by sectorAerospace and Defence

Precision engineering serves the aerospace and defence industry in the following key product groups:

- Aero-structures - Aerospace systems - Engine components - Maintenance, Repair and Overhaul (MRO)

Precision engineered products for the aerospace industry include aero engine assembly jigs, airframes, composite and metal fasteners, engine blades and nacelles. They include fuel line components, landing gear components and assemblies, and moulds and mandrels used in the production of composite wing and fuselage tools, as well as a wide range of cast and forged products.

Given the nature of the aerospace industry, the supply chain is becoming increasingly consolidated and precision engineering companies in this market therefore experience relatively high customer concentration. However, the most sophisticated precision engineers flourish in this environment as their customers demand ever more innovative product solutions, particularly with regard to ever increasing fuel efficiency in aircraft development. As well as fuel consumption and weight reduction, noise abatement and a reduction in maintenance requirements are other exciting opportunities for precision engineers serving the aerospace industry.

The civilian aerospace market is growing thanks in large part to increasing air freight demand and passenger air miles. As a result the build rates of the major players, namely Airbus and Boeing, show significant growth in the next decade. Overall the build rates of large commercial aircraft are expected to grow at a CAGR of 6.9% for the period spanning 2011-2014.

Regional aircraft manufacturers such as Bombardier and Embraer are also experiencing strong demand, whilst players in emerging markets such as Aviation Industry Corp of China and Hindustan Aeronautics of India represent the aircraft market of the future.

Military aerospace demand, on the other hand, has been severely impacted by sovereign debt issues in Europe and North America. However, there remain ongoing build programmes in

this market including the Joint Strike Fighter and Typhoon as replacements for military aircraft being retired, as well as the ongoing requirement for replacement components and systems for the current military aircraft fleets.

The aerospace industry is a major contributor to the UK economy and the second largest aerospace market in the world after the USA. The UK precision engineering sector serving the aerospace industry is recognised for its ability to deliver innovative solutions to complex engineering problems.

Many players occupy pivotal positions in the supply chains to customers such as Airbus, Bombardier, GKN, Goodrich and Rolls Royce, to name but a few. What concentration exists in precision engineers serving the aerospace industry can be found around Derby, Flintshire in North Wales, Gloucestershire, Somerset and large parts of North West England.

Challenges

We expect the precision engineering players serving the aerospace and defence sector to face increased cost pressures which will lead to consolidation across the industry. As a result, large and well-established players such as Senior and Meggitt are expected to increase their global footprint through further global acquisitions.

UK precision engineers serving the aerospace industry are constantly coming onto the radars of major groups operating in this market. In November 2011 listed UK aerospace equipment manufacturer Senior acquired Weston EU, a UK manufacturer of aero-structures, for £54m as part of the group’s strategy of widening its portfolio of products for the upcoming Airbus programmes. Ongoing consolidation is expected with the likes of Gardner, GKN and Meggitt all on the hunt for suitable targets.

UK Aerospace Industry Sales by Category (2010)

Source: UK Aerospace Industry Survey 2011 (ADS) Source: Boeing, Airbus and forecast from Investec Securities

Large Commercial Aircraft Build Rate (Units)

Total Turnover: £23.1bn

Boeing Airbus1500

1200

900

600

300

0

2008 2009 2010 2011 2012 2013 2014

483498 510

562594

630 636

655612543494462466

375

Civil 47.5%

Defence 52.5%

Automotive

The precision engineering industry has played a vital role in the growth of the global automotive industry. Vehicle manufacturers look to the precision engineering sector for innovative, modern and low weight products in order to develop more advanced and fuel efficient products.

Precision engineered products for automotive applications serve both original equipment manufacturers (OEMs) and the automotive aftermarket. The industry itself has undergone a significant transition in the last decade with reductions in trade barriers and the emergence of developing markets like China and India. Indeed, both of these countries have emerged as a dominant manufacturing location for major global OEMs.

Historically, the automotive sector has been a key contributor to the UK economy. There are still over 30 vehicle manufacturers located in the UK ranging from commercial vehicle, passenger car and yellow goods producers including Alexander Dennis, Honda, Jaguar Land Rover, JCB, Lotus, McLaren, Nissan, Rolls-Royce and WrightBus, to name but a few.

The recent announcements from Tata that it plans to expand both engine and vehicle production at Jaguar Land Rover has breathed life into the precision engineering supply chain. Currently, the UK automotive component manufacturing industry has the capability to supply over 80% of UK-based OEM demand , with an ever diminishing reliance on imports.

Significant government support coupled with increased focus on R&D is likely to be the driving force for precision engineering players in the UK automotive industry. The focus of numerous UK OEMs such as Aston Martin, Jaguar, Bentley and Rolls-Royce on serving niche, premium vehicle segments allows precision engineers to maintain a competitive advantage in respect of engineering developments and supply chain management.

Challenges

Increasing fuel prices and stringent emissions controls are the key drivers for innovative product developments. Precision engineered products play a key role in maximising fuel efficiency and reducing vehicle CO2 emissions.

M&A activity is therefore seeing larger players acquiring targets with new technologies including developers of products for battery-powered and hybrid vehicles. At the same time, margin pressures are driving consolidation within the industry and global players are seeking to increase their footprint in low-cost producing regions in order to remain competitive.

Motorsport

The precision engineering industry has had a long association with the motorsport industry with developments in numerous high precision product groups attributable to precision engineering expertise. Over the years advances in areas such as camshafts, connecting rods, crankshafts, cylinder liners, pistons, shock absorbers and wheel nuts have all been generated within the precision engineering base of the motorsport industry.

Most of the precision engineers serving the motorsport sector work in close partnership with their customers in order to develop innovative customised products. They tend to require high levels of investment in R&D, often requiring commitments from motorsport teams to fund their development work. At the same time, ongoing changes to the regulations by various motorsport federations require an ever increasing range of technological advances and innovations, many of which ultimately find their way into the wider automotive industry.

Precision engineering companies serving the motorsport sector are predominantly located in Europe and the USA, with a particular concentration in France, Germany, Italy and the UK given the close proximity to the major players in the motorsport sector. Indeed, the UK is home to some of the major Formula One teams such as Force India, McLaren, Red Bull and Williams. The UK’s so-called Motorsport Valley accounts for a significant proportion of the world motorsport industry and contributes more than £5bn per annum to the economy.

Challenges

The motorsport sector is in constant flux due to regulatory changes and the increasing financial demands placed upon industry participants. Formula One has seen a number of players leave the sector over recent years with manufacturers such as Honda opting out as a cost optimisation measure and other players such as Cosworth moving into new markets such as aerospace, defence and clean energy technologies.

Car and Commercial Vehicle production in UK (million)

Source: Society of Motor Manufacturers and Traders (SMMT), UK

2.0

1.6

1.2

0.8

0.4

0.02006 2007 2008 2009 2010

1.41.5 1.4

0.2 0.20.1

1.0

1.3

0.10.2

Car Production CV Production

The growing interest in motorsport from developing countries such as Brazil, China, India and Indonesia is supporting the overall expansion of the global motorsport industry. The market is also poised for a further round of innovation and new technological developments as the sector adapts to the need for emissions reductions and fuel efficiency.

Precision engineers will play a major part in these developments, with advances in the use of composite materials a clear example of how precision engineered products can contribute to innovation in the sector. Given their location, precision engineering companies located in the UK and the USA are most likely to benefit from collaborative R&D programmes with motorsport teams which in many cases embed them into the supply chain for critical products.

Oil and Gas

The oil and gas industry represents one of the largest and most profitable end markets for the precision engineering sector. Oil and gas exploration projects face harsh environmental conditions making it essential for manufacturers to use the right mix of components and equipment which are capable of withstanding such extreme conditions. Precision engineers are therefore critical for the supply of products such as deep hole drilling machines, drill bits, drill collars, drilling spools, manifolds, risers and valves, to name but a few. At the same time, numerous precision engineered components are used in the production of subsea applications.

The UK’s oil and gas industry has been flourishing on the back of increasing demand and favourable government policy. At the same time, the UK is home to global leaders in the design, engineering and manufacture of oil and gas equipment. Whilst macro-economic conditions have an immediate impact on large capital projects in the oil and gas industry, precision engineers operating in the sector have been able to structure their business models to cater to the sector’s ongoing capital expenditure and operating requirements, the majority of which are critical in nature.

Capital investment in the UK Continental Shelf (UKCS) region increased from £4.9bn in 2009 to £6bn in 2010, signifying an increase in new field development activities. Capital investment rose to approximately £8bn in 2011 as subsea developments allowed for more complex fields to be brought online.

Challenges

This increasing investment in the UK’s oil and gas sector is expected to bear rich fruit for precision engineering players serving the industry. This is despite the rise in the supplementary charge tax rate from 20% to 32% which was effective from March 2011.

What’s new?

Drilling equipment

Active R&D investment in the oil and gas sector in the past has resulted in the introduction of some of the most technologically innovative exploration equipment including casing handling equipment, drag bits, drill bits, drill pipe spinners, shank adapters and threaded button diamond core bits, to name a few. Most of the recent innovations have focused on weight reduction in drilling equipment through the use of alternative metals or alloys. Others have facilitated the development of the shale gas market through high pressure hydraulic fracturing.

Critical issues in the drilling market are the efficiency, environmental performance and safety features of the equipment. With these in mind, some of the more innovative products where precision engineered components play a critical part include:

• Hybriddrillbitscombiningpolycrystallinediamondcompact (PDC) and roller cone bit technology which provides smoother drilling and significant torque management.• Expandablelinerhangersystemswhichgeneratehigher torque to ream a liner in the hole, drill down a liner or deal with a stuck liner in trouble zones.• Slimholedrillbitswithdiametersoflessthansixinches which are capable of reducing both cost and environmental impact.• Mudlinesuspensionsystemswhicharedesignedforuse with bottom supported drilling platforms in a series of casing hangers that support the weight of each casing string at or near the mudline.• Selfactuatingcentraliserswhichallowautomaticexpansion and contraction as the tool passes the drill bit into the borehole.

The events surrounding the Macondo prospect in the Gulf of Mexico highlight the increasing pressure being placed on oil companies and their engineering contractors to develop both environmentally and safety compliant products. Suppliers of precision engineered components therefore have a crucial role to play and have the ability to secure long-term positions in the drilling supply chain.

Drilling activities in the UK - number of wells drilled

Source: Department of Energy & Climate Change, UK

300

200

100

02006 2007 2008 2009 2010 H1 2011

272 276 275

195 192

95

27 30 40 26 217

Offshore Exploration Drilling

Onshore Exploration Drilling

Flow products

Ever increasing exploration and drilling activities in extreme conditions, particularly in deepwater and ultra deepwater environments, has resulted in increased R&D focus for players in the flow products arena. Most of these developments are focused on increasing the power and pressure capabilities of actuators, pumps and valves thanks to more advanced computational fluid dynamics techniques.

The sector has therefore seen considerable advances in areas such as control valves, trunnion-mounted ball valves, electric actuators and hydraulic decoking systems, with advances focusing in particular on equipment which can withstand extreme environmental conditions.

Subsea equipment

As ever broader and wider well development is sought, subsea equipment is becoming more complex and technical. Whilst the market requires considerable cost-benefit analysis given the levels of capital expenditure required, the subsea market is becoming a further critical element of the overall oil and gas exploration space.

This area has seen some of the most technologically innovative equipment introduced including lubricant-free instrumentation valves, subsea control modules, subsea pressure gauges, subsea production trees and water injection trees.

On the back of these advances, further developments are now being explored in areas such as remotely operated vehicles (ROVs) and subsea robotics. The market is also exploring the use of composites and polymers in the manufacture of subsea equipment.

Transportation (excluding aerospace and automotive)

The transport sector comprises of the production of transportation equipment such as buses and coaches, off-highway vehicles, railway equipment and ships, as well as their associated parts. The precision engineering industry plays a pivotal role in all of these sectors by supplying a wide range of products to both the OEM market and the after market in all cases.

The UK has long had a high level of investment in transportation infrastructure including highways, ports and railway systems. In the last decade, the UK government has spent around £150bn on the development of its transport network. In tandem with this, the UK has attracted a significant amount of foreign investment in its transport infrastructure from the likes of Abellio, Deutsche Bahn and Norbert Dentressangle.

Precision engineering companies have a big role to play in advances in the transportation equipment market. The development of fuel efficient, lightweight, low emissions and safety compliant products are key drivers of the market. At the same time, precision engineers are integral to the aftermarket supply chains for a multitude of transportation systems. A fundamental driver for ongoing R&D in the sector is the ability of precision engineers in the market to generate above average margins from their aftermarket business.

Challenges

It is likely that the establishment of the Green Investment Bank (GIB) will have a significant impact on the transport equipment sector. The GIB will specifically target investments in companies, including precision engineers, which are developing the technologies which address existing environmental challenges and have the ability to create low-carbon emission products in the future.

What’s new?

Electric vehicles

Electric vehicles fall into a number of categories powered in part or in full by electric motors. These vehicles may be pure electric using only batteries; plug-in hybrid vehicles operating on both batteries and an internal combustion engine; or extended range electric vehicles operating on a short range battery which can be extended by an internal combustion engine.

Increasing regulatory pressures around emissions, volatile fuel prices and an emphasis on the use of alternative fuels have forced vehicle manufacturers to invest heavily in research into electric and hybrid power.

It is estimated that all categories of electric vehicles will have consolidated sales of around 13.9m units by 2017 on the back of rising fuel costs, government purchase incentives, increasing fuel economy standards and increased vehicle availability .

Increasing government initiatives coupled with improvements in technologies such as improved battery life will lead to a sharp increase in product launches in coming years. OEM vehicle manufacturers such as BMW, Chevrolet, Ford and Toyota have electric vehicle launches slated for 2012. These players expect to make deep inroads into the mass market, particularly in China and India, as unit prices are reduced.

Off-highway vehicles

The precision engineering industry plays a vital role in the design and manufacture of off-highway vehicles. The components used in these vehicles offer features such as greater ground clearance, more powerful engines and increased traction.

As well as a multitude of applications in the agricultural, construction, defence, infrastructure and mining markets, off-highway vehicles also cater for niche applications in areas such as the fast-growing adventure tourism and off-road motorsport markets.

Emerging market growth is driving the expansion of numerous yellow goods vehicle manufacturers such as Caterpillar and JCB and their engine suppliers such as Cummins. The sector is also a centre for excellence in the development of anti-corrosion, high-strength, lightweight metals such as advanced high strength steels including boron steels and high carbon steels. These initiatives are focused on vehicle weight reduction, thereby increasing fuel efficiency.

Railway equipment

The rail sector has witnessed the launch of several innovative products over the last decade where the precision engineering industry has played a vital part. These range from advanced environmentally friendly engines to lightweight wagons to advanced safety devices. The sector will continue to witness innovative product launches (including engines, lightweight wagons and coaches and safety devices) owing to a strong focus on safety, environment, and the pursuit to attain greater speeds.

One of the competing future concepts in railways would be the introduction of hybrid engines. Hybrid engines will be equipped with batteries to capture and store energy wasted

during the braking of the locomotive. The stored energy can then be used at the discretion of the engine driver to generate around 2,000 HP of additional emission-free energy, thereby saving a significant amount of fuel.

We foresee the increasing use of composite materials (having features like high strength, stiffness and low weight) in the manufacture of wagons and coaches in the future. This will lead to a reduction in the weight of wagons and coaches, thereby increasing fuel efficiency. We also expect the launch of several safety devices to curb increasing railway accidents (particularly in developing countries).

Electronics

Energy control equipment

Emission controls, environmental concerns and the changing energy mix has resulted in an increased focus on energy conservation and the development of the market for energy control equipment. Precision engineering players are increasingly involved in the design and production of energy control equipment, ranging from manual controlled to fully automatic, state-of-the-art systems used in heating, ventilation, air conditioning and refrigeration (HVACR) equipment, as well as in the design of lighting, power generation and power transmission equipment.

The demand for energy control devices such as automatic temperature control systems, intelligent light control systems and sensors will increase sharply in the near future due to an increasing focus on energy saving as a part of wider cost- optimisation strategies.

Military electronics

Avionics and military electronics designers are constantly faced with issues around power delivery, size and weight in electronic systems. Additionally thermal management is also a critical issue as electronic devices are increasingly deployed in a wide range of harsh environments.

The precision engineering sector, through its advanced design capabilities, is helping the military to overcome these challenges. Examples of such developments include innovative technologies such as circuit laminated materials based on reinforced Teflon commonly used in missiles; field-effect transistors (FET) for amplifying or switching electronic signals; monolithic microwave integrated circuits (MMIC) for communication and radar systems; and tantalum capacitors which are capable of sustaining tough environments.

The precision engineering industry is also active in developing advanced radar equipment and sensors which are capable of detecting improvised explosive devices (IEDs) and landmines by measuring ground-surface vibration. Precision engineered components are also increasingly finding applications in lightweight missile systems and unmanned aerial or land-based vehicles which are key elements of defence system development.

Uninterruptible power supply (UPS) devices

UPS equipment is a combination of advanced technology and precision engineering which sits between the grid and electronic devices in order to protect them from power interruptions. Some of the new generation UPS equipment includes rack-mounted and rack independent three-phase power supplies having critical power protection up to 120 kilovolts; three-phase double conversion transformer-less designed UPS systems; and three-phase lift backup systems and advanced military standby generators.

UPS equipment manufacturers are also increasingly focusing on developing compact, emissions free and fuel efficient products comprising of advanced battery technologies. The take up of this equipment is driven by the combination of the need to protect sensitive electronic devices from power failures and the avoidance of equipment downtime in a multitude of applications.

The global UPS market is expected to grow from $7bn in 2010 to $8.2bn in 2011. The market is expected to be worth $13.2bn by 2015, driven by fast expansion in China and other emerging economies in Asia and Latin America.

Hot niche: Composite materials

Increasing fuel prices and the quest for lightweight products has led to the growing use of alternative materials such as composites in the production of precision engineered components, particularly in the aerospace, automotive, defence and transportation sectors. The aerospace industry has already adopted a multitude of components based on composite materials including braking systems, fuselage components, interior systems and wings.

The use of composites in the transportation sector in particular has allowed for the use of components which are fundamentally lightweight and that have anti-corrosion, flexibility and higher

strength-to-weight ratio features. All of these factors deliver substantial fuel savings and a reduction in the maintenance expenditure of the end product.

Moreover, composites offer significant advantage when compared to traditional metals in the manufacture of various precision components and structural assemblies. Composite materials provide flexibility in selecting various combinations of the fibre reinforcement and resin matrix as per the required property of the final product.

Recent M&A transactions in Precision Engineering

Kenner Private Equity / Dynacast

Announced: 06/06/2011

Target: Dynacast(Ultimate Parent: Melrose)

Total Transaction Value ($m): 607.1

Purchaser: KDI Holdings (Ultimate Parent: Kenner & Co)

Stake Acquired (%): 100

Implied Enterprise Value/Revenues: NA

Implied Enterprise Value/EBITDA: NA

Implied Enterprise Value/EBIT: NA

Target Country: United States

Precision Castparts / Primus International


Target: Primus International

Total Transaction Value ($m): 900

Purchaser: Precision Castparts






National Oilwell Varco / Ameron International


Target: Ameron International


Purchaser: National Oilwell Varco


Implied Enterprise Value/Revenues: 1.3x

Implied Enterprise Value/EBITDA: 19.9x



COMMENTS:Dynacast, a division of Melrose, a UK engineering group, was sold to Kenner & Co, a US private equity firm. Dynacast is a US manufacturer of aluminium, magnesium alloy and zinc die castings. As a specialist industrial investor focusing on the engineering and manufacturing industries, Melrose divested Dynacast in order to realise its investments and return some of the proceeds to its shareholders.

COMMENTS:Precision Castparts acquired Primus International from Oak Hill Capital Partners, a US private equity firm. Primus is a US manufacturer of aerospace components.The acquisition allowed Precision Castparts to integrate Primus’ range of precision engineered components and complementary operations, whilst enhancing its airframe capabilities.

COMMENTS:National Oilwell Varco acquired Ameron International. Ameron is a US manufacturer of highly engineered products for the chemicals, energy, infrastructure, manufacturing, oil and gas and transportation markets The acquisition allowed National Oilwell Varco to broaden its range of engineered solutions including the addition of specialist composite components for applications in the renewable energy markets.

Joy Global / LeTourneau Technologies


Target: LeTourneau Technologies

Total Transaction Value ($m): 1,100.0

Purchaser: Joy Global




Implied Enterprise Value/EBIT: 78.8x


COMMENTS:Joy Global acquired LeTourneau Technologies from Rowan Companies. LeTourneau Technologies is a US designer and manufacturer of onshore and offshore oil and gas drilling and mining equipment. The acquisition allowed Joy Global to enhance its product offering in high-productivity mining solutions and expand its solutions for the oil and gas drilling market.

Bridgepoint Capital / SPP Process Technology Systems


Target: Sumitomo Process Technology Systems


Purchaser: Bridgepoint Capital





Target Country: United Kingdom

COMMENTS:Bridgepoint Capital backed the management buyout of SPP Process Technology Systems, a subsidiary of Sumitomo Precision Products Co. SPP Process Technology Systems is a UK manufacturer of semiconductor processing equipment.

TransDigm Group / Semco Instruments


Target: Semco Instruments


Purchaser: TransDigm Group






COMMENTS:TransDigm Group acquired Semco Instruments, a US manufacturer of precision engineered electrical moulded cables, sensors and wire harnesses. The acquisition allowedTransDigm to expand its engine applications product portfolio and strengthen its position in the US aerospace electronics market.

Goodrich Corp / Microtecnica


Target: Microtecnica


Purchaser: Goodrich Corp





Target Country: Italy

COMMENTS:Goodrich Corp acquired Microtecnica from Stirling Square Capital Partners, a UK private equity firm. Microtecnica is an Italian manufacturer of aircraft engine parts and aerospace equipment. The acquisition was part of Goodrich’s strategy of increasing its range of precision engineered actuation, electro-mechanical and hydraulic products for the aerospace industry.

Triumph Group / Vought Aircraft Industries


Target: Vought Aircraft Industries


Purchaser: Triumph Group




Implied Enterprise Value/EBIT: 7.4x


COMMENTS:Triumph Group acquired Vought Aircraft Industries from Carlyle, the US private equity firm. Vought Aircraft Industries is a US manufacturer of commercial aero-structures and airframes. The acquisition will help the Triumph Group to enhance its technical capabilities in aero-structures.

Famur SA / Remag


Target: Remag


Purchaser: Famur

Stake Acquired (%): 85.0




Target Country: Poland

COMMENTS:Famur acquired an 85% stake in Remag, a Polish manufacturer of precision engineered civil engineering, mining and quarrying equipment. The acquisition is part of Famur’s strategy of expanding its range of mining equipment and consolidating the market in Eastern Europe.

Outlook:

We expect M&A activity in the UK precision engineering market to be particularly active in the sectors where the UK has developed significant competitive advantage such as the aerospace, flow products, oil and gas and precision electronics sectors.

We expect further cross-border M&A activity due to the geographical diversification strategies of numerous Asian and North American purchasers. These groups are seeking manufacturers of technologically-differentiated products which will provide access to higher growth regions such as Brazil, China, India, Indonesia, Mexico and South Korea. At the same time, purchasers are focusing on targets which are embedded in the supply chains of their key customers. These factors provide purchasers with risk defence mechanisms and greater visibility when planning production schedules and managing their raw material inventories.

Source: Thomson M&A database, Datamonitor

Overview of 20 global precision engineering groups

Barnes Group

Revenues: 2010: $1,133m2009: $1,034m2008: $1,362m

Revenue CAGR (2008 - 2010): -8.8%

Net profit (2010): $53m

Net profit CAGR (2008 - 2010): -20.1%

R&D expenditure: 2010: $6m2009: $4m2008: $6m

Number of employees: 4,900

Location of headquarters: United States

Principal areas of business: Aerospace and industrial equipment

Segmental revenue breakdown (2010): Precision Components: 52%; Logistics & Manufacturing Services: 48%

Geographical revenue breakdown (2010): USA: 62%; Rest of World: 38%

Recent M&A activity: • Sold Kent Europe to Berner in November 2011

Barnes Group (NYSE: B) is a US provider of aerospace and industrial components and supply chain management services for the aerospace, consumer products, electronics, farm equipment, industrial gas turbine, medical devices, telecommunications and transportation industries. The group’s range of precision engineered components includes aerospace components, compression springs, flapper valves, mechanical springs, spring washers and stampings.

Doncasters Group

Revenues: 2010: $1,040m2009: $1,138m2008: $1,581m

Revenue CAGR (2008 - 2010): -18.9%


Net profit CAGR (2008 - 2010): 5.1%



Location of headquarters: United Kingdom


Segmental revenue breakdown (2011): Power Systems: 50%; Fastener Systems:17%; Specialist Engineering: 33%

Geographical revenue breakdown (2011): United States: 42%; United Kingdom: 18%; Rest of Europe: 25%; Rest of the World: 15%

Recent M&A activity: • Acquired FastenTech, North American based manufacturer of fasteners and precision components, from Citigroup Venture Capital for $492m in 2007.

Doncasters Group (Sponsor: Dubai International Capital) is a UK engineering group that manufactures precision components and assemblies for diverse sectors including aerospace, automotive, industrial gas turbines, petrochemical and transportation. The group’s product portfolio includes precision forged and machined compressor airfoils, forged and fabricated rings and casings, precision cast structural components, combustion systems, engine and airframe fabrications, pump and valve components and high strength fasteners.

Fenner

Revenues: 2010: $865m2009: $781m2008: $871m

Revenue CAGR (2009 - 2011): -0.4%


Net profit CAGR (2009 - 2011): -10.3%




Principal areas of business: Industrial equipment

Segmental revenue breakdown (2010): Conveyor Belting: 70%; Advanced Engineered Products: 30%

Geographical revenue breakdown (2010): Americas: 51%; Asia Pacific: 29%; Europe: 15%; Africa: 5%

Recent M&A activity: • Acquired Allison Custom Fabrication, a US provider of precision engineering and fabrication services for customised materials handling equipment for the mining industry, in November 2011• AcquiredTranseals Pty, an Australian manufacturer and distributor of hydraulic seals, in August 2011

Fenner (LON: FENR) is a UK manufacturer of reinforced polymer products. The company operates in two segments, conveyor belting and advanced engineered products. Some of the precision polymer products designed and manufactured by the company include detachable V-belts, thermoplastic belts, precision timing belts, flat belts, image transfer rollers, high-temperature hoses, technical fabrics and textile structures, keyless bushings and belt/chain tensioners. The company caters for a diverse range of industries including automobile, oil & gas, computer peripherals, aerospace and medical equipment.

Dover

Revenues: 2010: $7,133m2009: $5,776m2008: $7,569m

Revenue CAGR (2008 - 2010): -2.9%


Net profit CAGR (2008 - 2010): 8.9%





Segmental revenue breakdown (2010): Engineered Systems: 31%; Industrial Products: 26%; Fluid Management: 23%; Electronic Technologies: 20%

Geographical revenue breakdown (2010): United States: 54%; Europe: 17%; Asia: 17%; Other Americas: 10%; Others: 2%

Recent M&A activity: • Acquired Oil Lift Technology, a Canadian manufacturer of progressive cavity pump products in October 2011• Sold Crenlo, a US manufacturer of office furniture, and Paladin Brands Holding Inc, a US manufacturer of construction equipment attachments, to US private equity firm KPS Capital Partners for $290m in September 2011• Acquired Harbison-Fischer, a US manufacturer of oilfield pumps, for $402.5m in January 2011• Acquired the Sounds Solutions division of NXP Semiconductors for $855m in December 2010• Acquired BSC Filters, a UK manufacturer of microwave filters and waveguide components for the defence, radar, satellite and telecommunications industries, in May 2010

Dover (NYSE:DOV) is a US manufacturer of precision engineered components and equipment including automotive components, flow control products, industrial automation equipment, materials handling equipment and waste handling equipment.

Flowserve

Revenues: 2010: $4,032m2009: $4,365m2008: $4,473m

Revenue CAGR (2008 - 2010): -5.1%


Net profit CAGR (2008 - 2010): -6.3%





Segmental revenue breakdown (2010): Flowserve Pump: 52%; Flow Control: 29%; Flow Solutions: 19%

Geographical revenue breakdown (2010): Europe, Middle East & Africa: 46%; United States: 33%; Canada & Latin America: 10%; Asia & Australia: 11%

Recent M&A activity: • Acquired Valbart, an Italian manufacturer of trunnion-mounted ball valves, for $200m in July 2010.

Flowserve (NYSE: FLS) is a US manufacturer of fluid and motion control products for the aerospace, chemical, construction equipment, food processing, HVAC, industrial gas, metals, mining, nuclear, oil and gas, petrochemical, power generation, waste and water industries. The group’s range of products include industrial pumps, mechanical seals, submersible motors, thrusters and valves.

Goodrich

Revenues: 2010: $6,967m2009: $6,686m2008: $7,062m

Revenue CAGR (2008 - 2010): -0.7%


Net profit CAGR (2008 - 2010): -7.8%




Principal areas of business: Aerospace equipment

Segmental revenue breakdown (2010): Actuation & Landing Systems: 36%; Nacelles & Interior Systems: 33%; Electronic Systems: 31%

Geographical revenue breakdown (2010): United States: 50%; Europe: 34%; Asia Pacific: 8%; Canada: 3%; Other 5%

Recent M&A activity: • United Technologies acquired Goodrich for $16.2bn in September 2011• Acquired Microtecnica, an Italian manufacturer of aircraft engine parts and aerospace equipment, from UK private equity firm Stirling Square Capital Partners for $471.3m in January 2011

Goodrich (NYSE: GR) is a designer and manufacturer of aircraft and aero engine equipment including actuation equipment, braking systems, electronic systems, engine control systems, interior systems, landing gear and nacelles.

Hampson Industries

Revenues: 2011: $307m2010: $270m2009: $441m

Revenue CAGR (2008 - 2011): -16.5%


Net profit CAGR (2008 - 2011): 48.9%

R&D expenditure: NA




Segmental revenue breakdown (2011): Aerospace Components &Transparencies: 80%; Aerospace Components & Structures: 20%

Geographical revenue breakdown (2011): North America: 76%; United Kingdom: 10%; Europe: 11%; Rest of the World: 3%

Recent M&A activity: • Sold its Shims businesses to UK private equity firm Bridgepoint Development Capital for $84m in August 2011• Sold Hampson Precision Automotive to GIL Investments in June 2010• Sold Hampson Aerospace Machining to Darwin Private Equity for $39m in August 2009

Hampson Industries (LON: HAMP) is a UK aerospace and precision engineering group. Its products include composite and metallic airframe structures and components, composite aero engine components, precision moulds used in the production of composite fuselage and wing tools, metallic airframe components and structural metallic airframe assemblies. The group primarily serves the global commercial and military aerospace and engineering markets from its manufacturing facilities located in the UK, North America and India.

Illinois Tool Works

Revenues: 2010: $15,870m2009: $13,877m2008: $17,100m

Revenue CAGR (2008 - 2010): -3.7%

Net profit (2011): $1,527m

Net profit CAGR (2008 - 2011): 0.3%





Segmental revenue breakdown (2010): Transportation:16%; Industrial Packaging: 14%; Power Systems & Electronics: 12%; Food Equipment: 12%; Construction Products: 11%; Polymers & Fluids: 9%; Decorative Surfaces: 6%; Others: 20%

Geographical revenue breakdown (2010): United States: 42%; Europe: 31%; Asia: 11%; Other North America: 7%; Australia/New Zealand: 5%; Others: 4%

Recent M&A activity: • Acquired Gangnail Systems, a UK manufacturer of timber engineering equipment, from Eleco in December 2011• Acquired Despatch Industries, a US manufacturer of thermal processing equipment, in July 2011• Sold its industrial liquid finishing and powder coating businesses to Graco for $650m in April 2011

Illinois Tool Works (NYSE: ITW) is a diversified manufacturer of industrial products including building products, decorative surfaces, food processing equipment, industrial packaging, polymers and fluids, power systems and transportation equipment.

James Fisher & Sons

Revenues: 2010: $415m2009: $391m2008: $433m

Revenue CAGR (2008 - 2010): -2.1%


Net profit CAGR (2008 - 2010): -4.8%




Principal areas of business: Marine and specialist engineering services

Segmental revenue breakdown (2010): Specialist Technical Services: 43%; Marine Oil Services: 27%: Offshore Oil Services: 22%; Defence: 8%

Geographical revenue breakdown (2010): United Kingdom & Ireland: 49%; Norway:11%; Rest of the World: 40%

Recent M&A activity: • Acquired Maritime Engineers Pty, an Australian provider of marine engineering services, in December 2010• Acquired RigCool, a UK provider of safety systems design and installation services for the oil and gas industry, in September 2010• Sold Scan Tech Eiendom AS, the group’s Norwegian property management business, to Dusavika Eiendomsinvest for $26.5m in June 2010

James Fisher & Sons (LON: FSJ) is a provider of precision engineering and other technical services for the defence, energy, marine, nuclear, offshore and oil services sectors.

Melrose

Revenues: 2010: $2,132m2009: $2,033m2008: $1,658m

Revenue CAGR (2008 - 2010): 13.4%


Net profit CAGR (2008 - 2010): NA





Segmental revenue breakdown (2010): Energy: 31%; Lifting; 31%: Automotive: 20%; Other Industrial:18%

Geographical revenue breakdown (2010): North America: 38%; Europe: 30%; United Kingdom: 15%; Other: 17%

Recent M&A activity: • Sold Dynacast, a US manufacturer of automotive die castings, to US private equity firm Kenner & Co for $607m in June 2011• Sold Brush Traction Group, a UK manufacturer of propulsion equipment for the rail industry, to Westinghouse Air Brake Technologies in February 2011

Melrose (LON: MRO) is a diversified manufacturer of industrial equipment for the aerospace, consumer durables, electronics, materials handling, medical equipment, power and telecommunications industries.

National Oilwell Varco

Revenues: 2010: $12,156m2009: $12,712m2008: $13,430m

Revenue CAGR (2008 - 2010): -4.9%

Net profit (2011): $1,667m

Net profit CAGR (2008 - 2010): -7.6%

R&D expenditure: NA



Principal areas of business: Oil and gas equipment

Segmental revenue breakdown (2010): Rig Technology: 55%; Petroleum Services & Supplies: 33%; Distribution Services: 12%

Geographical revenue breakdown (2010): United States: 34%; South Korea: 22%; Canada: 5%; Norway: 4%; Singapore: 4%; United Kingdom: 3%; Other Countries: 28%

Recent M&A activity: • Acquired Ameron International, a US manufacturer of highly-engineered products for the oil and gas industry, for $777.7m in July 2011• Acquired Capital Valves, a UK distributor of oil and gas valves, in March 2011

National Oilwell Varco (NYSE: NOV) is a provider of precision engineering, supply chain management and technical services for the oil and gas drilling and production sectors. The groups’ range of products includes blowout preventers, drilling fluids, drilling motors, drill bits, motion compensation systems, mud pumps, pipe handling systems, rig controls, risers, rotary tables and top drives.

Renold

Revenues: 2011: $297m2010: $249m2009: $335m

Revenue CAGR (2009 - 2011): -5.7%


Net profit CAGR (2009 - 2011): NA

R&D expenditure: 2011: $1m2010:$1m2009:$1m




Segmental revenue breakdown (2011): Chain: 76%; Torque Transmission: 24%

Geographical revenue breakdown (2011): United States: 34%; United Kingdom 9%; Rest of Europe: 29%; Other countries 28%

Recent M&A activity: • Acquired a 75% stake in the Indian industrial chains division of LG Balakrishnan & Bros in September 2008.

Renold (LON: RNO) is a manufacturer of precision engineered conveying equipment including conveyor chains, couplings, gears, material handling support equipment, roller chains, sprag clutch freewheels and trapped roller freewheels.

Precision Castparts

Revenues: 2011: $6,220m2010: $5,459m2009: $6,771m

Revenue CAGR (2009 - 2011): -4.2%

Net profit (2011): $1,014m

Net profit CAGR (2009 - 2011): -1.5%





Segmental revenue breakdown (2011): Forged Products:45%; Investment Cast Products: 34%; Fastener Products: 21%

Geographical revenue breakdown (2011): United States: 83%; United Kingdom: 11%; Rest of the world: 6%

Recent M&A activity: • Acquired Primus International, a US manufacturer of precision engineering components for the aerospace industry, from US private equity firm Oak Hill Capital Partners for $900m in July 2011• Acquired Unison Engine Components, a US manufacturer of cold-rolled and flash-welded rings for gas turbine and jet engine applications, from General Electric in June 2011• Acquired PB Fasteners, a US manufacturer of industrial fasteners, in May 2011

Precision Castparts (NYSE:PCP) is a manufacturer of complex metal components and products for the aerospace and industrial gas turbine industries. The group’s range of products includes fasteners, forgings, grinder pumps, investment castings, metalworking tools, seamless pipe, screen cylinders and speciality alloys.

Spirax-Sarco

Revenues: 2010: $912m2009: $812m2008: $930m

Revenue CAGR (2008 - 2010): -1.0%


Net profit CAGR (2008 - 2010): 10.1%





Segmental revenue breakdown (2010): Steam Specialties Business: 83%; Watson-Marlow Bredel: 17%

Geographical revenue breakdown (2010): Europe, Middle East & Africa: 47%; Asia Pacific 27%; Americas: 26%

Recent M&A activity: • Acquired the remaining 51% stake in Spirax-Sarco Mexicana for $15.5m in May 2010

Spirax-Sarco Engineering (LON: SPX) is a designer, manufacturer and installer of commercial and industrial fluid control and steam systems.

Senior

Revenues: 2010: $876m2009: $846m2008: $1,042m

Revenue CAGR (2008 - 2010): -8.3%


Net profit CAGR (2008 - 2010): -7.2%





Segmental revenue breakdown (2010): Aerospace: 59%; Flexonics: 41%

Geographical revenue breakdown (2010): United States: 54%; United Kingdom: 11%; Rest of the World: 35%

Recent M&A activity: • Acquired Weston EU, a UK manufacturer of aero structures, in November 2011• Acquired Damar Machine, a US manufacturer of precision engineered aerospace components, in March 2011• Acquired WahlcoMetroflex, a US manufacturer of dampers and exhaust gas systems, for $13.3m in August 2010

Senior (LON: SNR) is a manufacturer of precision engineering products for the aerospace, automotive, defence, energy and transportation industries. The group’s range of products includes aero structures, composite ducting systems, engine structures, fluid control systems, machined components and metallic ducting systems, as well as emissions control and exhaust systems.

SPX

Revenues: 2010: $4,887m2009: $4,846m2008: $5,827m

Revenue CAGR (2009 - 2011): -8.4%


Net profit CAGR (2009 - 2011): -8.9%





Segmental revenue breakdown (2011): Flow Technology: 34%; Thermal Equipment and Services 33%; Test and Measurement: 19%; Industrial Products and Services: 14%

Geographical revenue breakdown (2011): United States: 50%; Germany: 11%; China: 8%; United Kingdom: 5%; Other Countries: 26%

Recent M&A activity: • Acquired e&e Verfahrenstechnik, a German manufacturer of evaporation, extraction, freeze drying and vacuum equipment for the biofuel, food and beverage and pharmaceutical industries, in October 2011• Acquired Clyde Union, a UK manufacturer of industrial pumps, from Clyde Blowers for $1.2bn in August 2011

SPX (NYSE: SPW) is a manufacturer of a range of specialist engineering and technical products including building and security systems, compaction equipment, electrical testing equipment, flow control equipment, laboratory and life science equipment and power systems.

Textron

Revenues: 2010: $10,525m2009: $10,500m2008: $14,010m

Revenue CAGR (2008 - 2010): -13.3%


Net profit CAGR (2008 - 2010): -57.9%





Segmental revenue breakdown (2010): Bell: 31%; Cessna: 24%; Industrial: 24% Textron Systems: 19%; Finance: 2%

Geographical revenue breakdown (2010): United States: 64%; Europe: 14%; Latin America and Mexico: 8%; Asia and Australia: 7%; Middle East and Africa: 4%; Canada: 3%

Recent M&A activity: • Acquired Crane Wireless Monitoring Solutions, a US supplier of wireless sensor networks, in July 2010• Acquired MillenWorks, a US supplier of mobility solutions, in June 2010

Textron (NYSE: TXT) is a diversified manufacturer of industrial equipment including helicopters, light aircraft, power tools and utility vehicles.

Source: Company Website, Annual Report, Bloomberg, ThomsonOne, Datamonitor

Tricorn Group

Revenues: 2011: $34m2010: $24m2009: $38m

Revenue CAGR (2009 - 2011): -5.9%


Net profit CAGR (2009 - 2011): 2.9%

R&D expenditure: NA

Number of employees: 291



Segmental revenue breakdown (2011): Energy: 40%; Transportation: 33%; Aerospace: 23%; Utilities: 4%

Geographical revenue breakdown (2011): United Kingdom: 72%; Rest of Europe: 17%; Rest of the World: 11%

Recent M&A activity: NA

Tricorn Group (LON: TCN) is a manufacturer of precision engineered fittings and tubular systems for the aerospace, automotive, medical, oil and gas, power generation and transportation industries.

Tomkins

Revenues: 2010: $4,854m2009: $4,180m

Revenue CAGR (2009 - 2011): 16%


Net profit CAGR (2009 - 2010): 62%

R&D expenditure: NA


Location of headquarters: UK

Principal areas of business: Automotive, building products and industrial equipment

Segmental revenue breakdown (2011): NA

Geographical revenue breakdown (2011): NA

Recent M&A activity: Tomkins was taken private in July 2010 in a $4.5bn transaction backed by a consortium comprising Canadian private equity firm Onex and the Canada Pension Plan Investment Board.

Tomkins (Sponsors: Onex and the Canada Pension Plan Investment Board) is a manufacturer of automotive, fluid power, HVAC and power transmission products. The group's range of products includes Dexter Axle, Ideal Clamp Products and Schrader Electronics automotive components, Aquatic, Hart & Cooley, Ruskin and Selkirk air distribution products and Gates fluid power products.

Triumph Group

Revenues: 2011: $2,905m2010: $1,295m2009: $1,240m

Revenue CAGR (2009 - 2011): 53.0%


Net profit CAGR (2009 - 2011): 30.5%




Principal areas of business: Aerospace equipment

Segmental revenue breakdown (2011): Aerostructures:73%; Aerospace Systems: 18%; Aftermarket Services: 9%

Geographical revenue breakdown (2011): United States: 100%

Recent M&A activity: • Sold Triumph Precision Castings, a US manufacturer of turbine engine components, to US private equity firm Torque Capital in July 2011• Acquired Vought Aircraft Industries, a US manufacturer of commercial aerostructures, from US private equity firm Carlyle in March 2010• Acquired Fabritech, a US manufacturer of precision engineered aerospace components, in March 2010

Triumph Group (NYSE:TGI) is a manufacturer of aerospace equipment including aerostructures, aircraft components, aircraft wings, composite and metal bondings, control systems, fuselage sections, nacelles, sensors and wing spars.

Global reachWe operate nationally from four offices across the UK and internationally from 32 countries around the world

For a comprehensive list of IMAP advisors and to discover how IMAP can help you with your M&A transaction, go to www.imap.com.

ArgentinaBuenos AiresAustriaViennaBelgiumBrusselsBrazilSao PauloCanadaTorontoVancouverChileSantiago ChinaBeijing

GermanyMannheim HungaryBudapestIndiaBangaloreMumbaiIrelandDublinItalyBolognaJapanTokyoMexicoMexico City

TurkeyIstanbul United KingdomLondon BirminghamManchesterNottinghamUnited StatesNew YorkChicagoLos AngelesAtlantaMiamiSan FranciscoVenezuelaCaracas

Costa RicaSan JoseCroatiaZagrebCzech RepublicPragueDenmarkCopenhagenEgyptCairoFinlandHelsinkiFranceParis

NetherlandsAmsterdam NorwayOsloPolandWarsawPortugalPortoSpainBarcelonaMadridSwedenStockholmSwitzerlandZurich

London

Manchester

Nottingham

Birmingham

www.clearwatercf.com© Copyright 2012 Clearwater Corporate FinanCe llp. this report and the inFormation herein is the exClusive domain oF Clearwater and may not be used or reprinted without permission.

9 Colmore RowBirminghamB3 2BJTel: +44 (0)845 052 0360Fax: +44 (0)845 052 0361

21-23 Castle GateNottinghamNG1 7AQTel: +44 (0)845 052 0380Fax: +44 (0)845 052 0381

62-65 Chandos PlaceLondonWC2N 4HGTel: +44 (0)845 052 0300Fax: +44 (0)845 052 0303

50 Brown StreetManchesterM2 2JTTel: +44 (0)845 052 0340Fax: +44 (0)845 052 0341

Precision Engineering Sector Report...

Documents

Transcript of Precision Engineering Sector Report...