Advent International Considering Bid for Senior Engineering Group

Advent International, the American private equity firm, has revealed that it is contemplating a bid for Senior, a Hertfordshire-based engineering group currently listed on the FTSE 250. This announcement comes after Senior disclosed that it had received multiple offers for the business, prompting an increase in its stock price.

The potential bid from Advent follows a series of recent approaches for Senior’s acquisition. The firm has already rejected three offers from an unnamed bidder. Subsequently, it enlisted the services of investment banks Lazard and Jefferies to facilitate discussions with a select number of interested parties. This strategic move aims to ascertain the value that might be achieved from such offers.

In its recent statement, Senior confirmed that it has received two superior all-cash proposals from additional potential bidders. The board is currently engaged in ongoing discussions with these parties, which could potentially lead to a significant transaction.

Senior operates within the aerospace sector, supplying components for major manufacturers such as Boeing and Airbus. The company, headquartered in Rickmansworth, Hertfordshire, has a workforce of nearly 6,700 and runs 26 operating businesses across 12 countries. Its specialisation includes fluid conveyance and thermal management systems.

The group has recently divested its aerostructures business to Sullivan Street Partners, which was accomplished at an enterprise value of up to £200 million. This segment, now trading under the Zenix aerospace brand, manufactures airframe components, engine parts, and various equipment for the aerospace, defence, and space sectors.

Analysts suggest that Senior is poised for strong results, given positive trends in the aerospace industry. The expectation is that the company will report revenues of approximately £754 million, with a profit before tax projected at £51.3 million during its forthcoming full-year results.