Shares in engineering group Senior PLC (LSE:SNR) soared 12% on Friday, leading the FTSE 250, after the company agreed to sell its Aerostructures division for up to £200 million, leading to a £40 million share buyback being unveiled.
The buyer is a UK private equity firm Sullivan Street Partners, which is paying £150 million upfront, with a further £50 million possible in 2026 if performance targets are met.
The deal values the business at 13.1 times its expected 2024 earnings.
Senior said proceeds from the sale would reduce debt and fund the buyback. The company will now focus exclusively on its fluid conveyance and thermal management (FCTM) division, which supplies specialist components to sectors such as aerospace, defence, and energy.
Chief executive David Squires said the move would deliver higher margins, lower capital requirements and stronger returns. The transaction is expected to complete by the end of the year, subject to approvals.
The stock rose 22.2p to 210p.