Aerospace manufacturer Sigma acquired by private equity firm

Silverfleet plans to make further investments in various manufacturing segments in Europe

Private equity firm Silverfleet has acquired the majority stake in aerospace components manufacturer Sigma Components in deal worth £65 million.

Sigma Components produces modules such as pipes, ducts, fabrications and precision surface finishing for the commercial aerospace sector, serving customers including, Airbus, BAE Systems, Bombardier, Rolls-Royce and Safran.

Sigma operates four sites in the UK and two sites in China, including the Nuneaton and Xi’an facilities it acquired from Rolls-Royce in March 2016. The company experienced a period growth over the past few years before proposition from Silverfleet, which had been considering investments into UK-based aerospace forgings and precision machining businesses, a spokesperson told PE.

Silverfleet says that Sigma will benefit from its leadership as "a shareholder, with resources (financial and team) to help it grow through buy and build (acquisition and investment) and as a shareholder that isn’t constrained by half yearly reporting to public shareholders".

As for its plans for the business, Silverfleet said it will "seek to develop Sigma, working with its management team to broaden its manufacturing capabilities, including potentially in new geographies, and developing its relationships with new and existing customers".

The spokesperson added: “Management will gain autonomy from the wider operations of the Avingtrans group. We expect the focus that this brings will result in operational and financial benefits to Sigma.”

Mark Johnson, chief executive of Sigma, said: “We welcome the investment by Silverfleet as we believe they are an ideal partner to support Sigma in its next growth stage.  We have identified some exciting opportunities for broadening our manufacturing capabilities and developing our relationships with new and existing customers and look forward to taking the business to the next level.”

The purchase is supported through debt financing from HSBC and Santander. Silverfleet also revealed that it plans to make further investments in various manufacturing segments in Europe. 

The transaction is expected to conclude before the end of this month, while the deal undergoes approval under German and Austrian regulation and by shareholders in Avingtrans, Sigma Components’ parent company. Sigma’s current management team will also obtain a minority stake in the business.