UMECO PUTS PATTONAIR ONTO THE MARKET

Dino D'Amore
By Dino D'Amore February 8, 2011 16:53

UMECO PUTS PATTONAIR ONTO THE MARKET

Shares in distribution company Umeco rose by 8% today after reports that it was planning to sell the aerospace supplier Pattonair for over £200 million. Analysts say that such a disposal would transform Umeco’s balance sheet from a £70 million net debt position to one with a healthy surplus.  Umeco is believed to have hired NM Rothschild to sell the Derby-based company. Pattonair recorded pre-tax profits of £2.1 million in the year to 31 March 2010 on revenues of £33.6 million.

Umeco shares have lagged of late driven lower by problems at Rolls Ryce and Boeing, the company will be hoping that cancelling debt will show.

A statement yesterday to markets simply said: “Umeco notes the recent speculation in relation to a possible sale of Pattonair, its Supply Chain business. The Board can confirm that it is in non-exclusive discussions which may or may not lead to a sale of Pattonair. No final terms are agreed and any such disposal would be subject, inter alia, to shareholder approval under the Listing Rules”.

Dino D'Amore
By Dino D'Amore February 8, 2011 16:53
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